Sensex may find support at 71,000-71,200; Nifty could target 22,800 levelsIANS
witnessed the Indian equity market enter its eighth consecutive week of correction, with benchmark indices closing sharply lower due to sustained foreign fund outflows, rising crude prices, and weak global cues.
The bearish trend dominated throughout the week as the Sensex dropped 1.52 per cent on Monday and lost a further 0.79 per cent on Thursday. In total, the Sensex slipped 1,670.84 points, while the Nifty declined over 3 per cent during the week.
On Thursday, both the Sensex and Nifty fell for the fourth straight session amid persistent selling pressure from foreign institutional investors, elevated bond yields, and a fresh surge in crude oil prices, dampening investor sentiment.
The Sensex closed at 71,909.70, down 570.59 points or 0.79 per cent, even touching a 52-week low intra-day of 71,292.88 after plunging 1,187.41 points. The Nifty settled at 22,421.95, falling 198.50 points or 0.88 per cent.
Despite the ongoing weakness, analysts pointed out that technical indicators suggest a potential short-term recovery.
They noted the Sensex remains below key moving averages, trading under the 50-day EMA of 75,544.56 and the 200-day EMA of 77,684.60.
Experts identified immediate support for the Sensex in the 71,000 to 71,200 range, with resistance expected between 72,300 and 72,500.
Sensex may find support at 71,000-71,200; Nifty could target 22,800 levelsAI
the broader market structure appears weak, oversold conditions and proximity to critical support levels may enable a relief rally in the near term, according to analysts.
Market watchers advised that traders adopt a hedged approach due to volatile conditions, with Nifty’s initial upside target at 22,800, followed by 23,100 to 23,200. However, a decisive break below the April low could invalidate the rebound and push the index down toward 21,700 to 22,000.
Moving forward, analysts emphasized that the market’s near-term direction will be influenced by global factors, crude oil prices, bond yields, and foreign institutional investor activity trends.