New Delhi, Aug 30 (IANS) The Sensex and Nifty ended lower for the third consecutive week, with analysts maintaining a cautious near-term outlook as global interest-rate concerns, geopolitical risks and volatility associated with the new Closing Auction Session continued to weigh on investor sentiment.
On the Sensex outlook, analysts said the 77,700-78,000 zone remains the immediate resistance area.
“A sustained breakout above 78,000 could strengthen the recovery and take the index towards 78,500-78,800. On the downside, 77,000 remains an important psychological support, followed by the 76,700-76,500 region,” an analyst stated.
Analysts said holding above 77,000 would be crucial for preserving the broader recovery structure, while a decisive break below this level could trigger renewed selling pressure. Overall, the near-term technical outlook for the Sensex remains cautious.
Market experts said the 24,000-23,800 zone remains the immediate support area for the Nifty and would be crucial for maintaining its broader structure.
“On the upside, the 24,300-24,400 range remains the immediate resistance zone, Mishra said. A sustained breakout above 24,400 could improve the technical setup and trigger a recovery towards the 24,600 level,” a market expert noted.
The benchmark indices, however, staged a strong rebound on Friday, supported by robust buying in IT stocks, positive global technology cues and softer oil prices. The Sensex gained 331 points, or 0.43 per cent, to close at 77,264.51, while the Nifty advanced 85 points, or 0.35 per cent, to settle at 24,175.65.
Despite Friday’s recovery, the Sensex declined nearly 0.36 per cent over the week, while the Nifty slipped around 0.31 per cent.
The broader market showed greater resilience, with the Midcap and Smallcap indices rising about 0.52 per cent and 0.51 per cent, respectively.
The Sensex continues to trade within a broader consolidation structure after a period of correction. Analysts said the index needs to cross key resistance levels decisively for the recovery to gain momentum.
–IANS
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