Mumbai, Aug 2 (IANS) After staging a strong comeback this week, the Indian equity benchmarks are expected to remain on a positive footing in the near term, with the Sensex likely to test the 79,000–79,200 zone and the Nifty 50 eyeing 24,850, provided key resistance levels are decisively crossed, market analysts said on Sunday.
The Indian stock market snapped its recent losing streak during the week as softer crude oil prices, easing geopolitical tensions, encouraging first-quarter FY27 earnings and renewed foreign institutional investor (FII) inflows lifted investor sentiment.
The decline in crude oil prices from recent highs eased concerns over imported inflation, corporate profitability and India’s external account, providing further support to equities.
Backed by these favourable factors, the benchmark indices recovered a significant portion of the losses recorded in the previous week.
The Nifty surged 2.59 per cent to close at 24,383.60, while the Sensex gained 2.68 per cent to settle at 78,094.64. Both indices also registered their second consecutive monthly gain in July.
Commenting on the technical outlook for the Sensex, analysts said the benchmark mirrored the broader market recovery by reclaiming the 78,000 mark as improving earnings sentiment boosted investor confidence.
“The 78,300–78,500 zone remains the immediate resistance for the Sensex. A sustained breakout above this range could propel the index towards the 79,000–79,200 levels,” an analyst stated.
“On the downside, the 77,700–77,500 zone is expected to provide immediate support, followed by the crucial psychological level of 77,000,” a market expert mentioned.
Holding above these levels would keep the technical structure intact, while a breach below 77,000 could trigger fresh selling pressure,the market expert noted.
Sharing outlook on the Nifty, a market expert said the benchmark has reclaimed its 200-day exponential moving average (EMA), while the Relative Strength Index (RSI) has strengthened to 59, indicating improving momentum.
“The immediate resistance for the Nifty is placed in the 24,550–24,600 zone. A sustained move above this hurdle could pave the way for a rally towards the 24,850 mark,” a market expert stated.
–IANS
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