Sensex needs to cross 77,720-78,000 for recovery, Nifty eyes 24,400-24,600: Analysts

Mumbai, Aug 23 (IANS) The near-term outlook for the Indian stock market remains sideways to cautious, with analysts identifying 77,000-77,380 as an immediate support zone for the Sensex and 77,720-78,000 as a key resistance area, while the Nifty faces resistance at 24,400-24,600.

Analysts said a sustained move above the Sensex resistance zone could improve the short-term market outlook, while holding above the 77,000-77,380 support range would keep the ongoing consolidation structure intact.

“From a technical perspective, the index continues to trade around its 50-Day EMA but remains below the crucial 200-Day EMA, keeping the broader trend cautious. RSI at 49.00 indicates subdued momentum, with no clear directional strength at present,” a market expert stated.

“Immediate support is placed at 77,000–77,380, while 77,720–78,000 remains the key resistance zone,” the analyst added.

For the Nifty, analysts have placed immediate support in the 24,000-23,800 zone, followed by stronger support near 23,650.

“Sustaining above 24,000 and the lower triangle trendline would indicate continued buying interest on declines and help preserve the current technical structure,” an analyst stated.

“On the upside, a decisive move above 24,600 could strengthen recovery momentum and attract fresh buying, while a break below 23,900 may increase selling pressure and weaken the near-term setup,” a market expert noted.

The benchmark indices ended the week on a cautious note, extending their recent corrective trend amid elevated crude oil prices, rising global bond yields and persistent geopolitical tensions, which continued to weigh on investor sentiment.

Trading remained volatile through the week, with the benchmark indices witnessing intermittent recovery attempts before ending Friday largely unchanged as investors assessed the evolving global risk environment.

On a weekly basis, the Nifty declined around 0.47 per cent to close at 24,252, while the Sensex fell nearly 0.60 per cent to settle at 77,540.83. The decline marked the second consecutive week of losses for both benchmark indices.

The broader market, however, showed relative resilience. The SmallCap index gained around 1.2 per cent during the week, while the MidCap index ended marginally lower.

On Friday, the Sensex edged up just three points to close at 77,540.83, while the Nifty 50 gained 20 points, or 0.08 per cent, to settle at 24,252.

–IANS

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