Nifty faces resistance at 24,500, Sensex eyes 79,000 if rally sustains: Analysts

Mumbai, June 28 (IANS) The Indian stock market ended the holiday-shortened week on a positive note, with benchmark indices extending gains for a third session out of four and the Nifty holding firmly above the key 24,000 mark.

Analysts said the near-term technical outlook remains constructive, although fresh buying will be needed for the next leg of the rally.

Market experts said that the Sensex continues to trade with a constructive bias after recovering from recent lows. “The 77,500-77,700 zone remains the immediate hurdle for the index, and a sustained move above this range could strengthen bullish momentum and open the door for a rally towards 78,000-79,000,” an analyst said.

“On the downside, immediate support in the 77,000-76,900 region. Maintaining levels above this zone will be critical to preserving the ongoing recovery trend,” the analyst stated.

For the Nifty, market experts said the index started the week on a positive note but witnessed some profit-booking during the initial sessions, slipping to an intra-day low of 23,784.95 before recovering.

“Immediate resistance for the Nifty is placed at 24,400 and 24,500. A sustained move above these levels could attract fresh buying interest and strengthen the ongoing recovery. On the downside, he expects support to emerge at 23,900 and 23,800,” an analyst mentioned.

Meanwhile, the Sensex rose 0.39 per cent during the week to close at 77,100.47, while the Nifty gained 0.18 per cent to end at 24,056.

The retreat in crude oil prices emerged as a key tailwind for domestic equities. With tanker movement through the Strait of Hormuz returning to normal and geopolitical tensions in West Asia easing, Brent crude slipped back to pre-conflict levels.

The decline eased worries over imported inflation, India’s current account deficit and pressure on corporate profit margins.

Analysts believe the market’s technical setup remains favourable, with both benchmark indices positioned for further gains if key resistance levels are crossed.

–IANS

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