Nifty 50, Sensex and the Nifty Financial institution indices got here beneath strain in the direction of the top of final week. The escalating geopolitical tensions between India and Pakistan triggered a fall within the benchmark indices. The Sensex and Nifty fell over a per cent whereas the Nifty Financial institution index was down sharply over 2 per cent.
The continuing India-Pakistan skirmish can proceed to weigh available on the market sentiment. Nevertheless, on the charts, nothing has modified a lot. The autumn final week signifies that it’s only a correction throughout the broader upmove. Additionally, on the charts, sturdy helps are seen for the Nifty 50, Sensex and the Nifty Financial institution index to restrict the draw back. As such, any fall from right here needs to be thought of as a great shopping for alternative.
Among the many sectors, the BSE Auto index outperformed final week. The index was up 1.54 per cent. The BSE Realty index was crushed down probably the most. It was down 6.33 per cent.
FPIs purchase
International Portfolio Traders (FPIs) continued to purchase the Indian equities for the fourth consecutive week. The fairness section noticed a internet influx of about $1.65 billion final week. Within the final 4 weeks, the FPIs have poured in about $5.87 billion into the fairness section, a constructive sign. Continued FPI shopping for will support the Sensex and Nifty to maneuver increased going ahead.
Video Credit score: Businessline
Nifty (24,008)
Nifty witnessed a fall within the second half of the week after buying and selling steady within the first half. It fell to a low of 23,935.75 on Friday earlier than closing the week at 24,008, down 1.39 per cent.
Quick-term view: Fast assist is at 23,900-23,850. Under this, 23,600 is the following necessary assist which will be examined if Nifty declines beneath 23,850. Nevertheless, a fall past 23,600 is much less seemingly. We anticipate the Nifty to reverse increased both from 23,850 itself or from round 23,600. That leg of rise will take the Nifty as much as 24,300 first, after which to 24,500-24,600 once more. Finally, we anticipate the Nifty to breach 24,600 and rise to 24,800 within the brief time period.
This bullish view will go mistaken provided that Nifty declines beneath 23,600. If that occurs, 23,300-23,200 will be seen on the draw back.
Chart Supply: TradingView
Medium-term view: The broader bullish view stays intact. As talked about final week, the broader 23,000-22,000 area is a powerful assist. The extent of 21,650 is a a lot decrease assist. A fall beneath 21,650 is required to show the outlook bearish which seems unlikely now.
We will anticipate the Nifty to maintain above 23,000 itself. An increase to 25,000-26,000 will be seen within the coming months. Broadly, the present leg of upmove has potential for the Nifty to focus on 28,000-28,500, and even increased over the following one 12 months.
Nifty Financial institution (53,595,25)
The corrective fall to 53,300 is occurring consistent with our expectation. Nifty Financial institution index fell to a low of 53,483.05 and closed the week at 53,595.25. The index was down 2.76 per cent for the week.
Quick-term outlook: Fast assist is at 53,450. If the index declines beneath this assist, a fall to 52,500, the following necessary assist, will be seen. Nevertheless, a fall past 52,500 is much less seemingly.
Nifty Financial institution index can reverse increased both from 53,450 itself or after an prolonged fall to 52,500. That bounce will point out the start of a brand new leg of upmove. It will probably take the Nifty Financial institution index as much as 56,000 once more. An eventual break above 56,000 will then clear the best way for the Nifty Financial institution index to focus on 57,500-58,000 within the brief time period.
The short-term outlook will flip unfavourable solely on a break beneath 52,500. If that occurs, the Nifty Financial institution index can fall to 51,200-51,000.
Chart Supply: TradingView
Medium-term outlook: The broader bullish view will stay intact so long as the Nifty Financial institution index stays above 52,500. Nifty Financial institution index can goal 61,000 on the upside within the coming months.
We reiterate that 58,000 is an intermediate resistance. A corrective fall from there to 56,000 will be seen earlier than the Nifty Financial institution index heads up in the direction of 61,000.
Sensex (79,454.47)
Sensex did not get a powerful follow-through rise above 81,000, and fell final week. The index made a low of 78,968.34 and closed the week at 79,454.47, down 1.3 per cent.
Quick-term view: Fast helps are at 78,800 and 78,600. Under that, 78,000 is the following sturdy assist. A fall beneath 78,000 seems much less seemingly now. A bounce both from the 78,800-78,600 area or from round 78,000 can take the Sensex as much as 81,000 once more. An eventual break above 81,000 can take the Sensex as much as 82,300-82,500.
Sensex has to say no beneath 78,000 to show the short-term outlook bearish. In that case, a fall to 77,000-76,500 will be seen.
Chart Supply: TradingView
Medium-term view: The massive image stays constructive. The degrees of 78,000 and 76,000-75,500 are sturdy helps.
We retain the bullish view of the Sensex rising to 85,000-86,000 within the coming months. From a long-term perspective, Sensex has potential to focus on 90,000 and 92,000 over the following one 12 months.
Dow Jones (41,249.38)
The Dow Jones Industrial Common fell initially final week. The index touched a low of 40,759.41 on Tuesday after which bounced again recovering all of the preliminary loss. The Dow Jones then surged to a excessive of 41,773.22 and fell again once more to shut the week at 41,249.38, down 0.16 per cent.
Chart Supply: TradingView
Outlook: The near-term outlook is constructive with a assist at 40,800. So long as the Dow sustains above this assist, an increase to 42,200-42,300 continues to be doable.
The worth motion thereafter will want a detailed watch as a result of 42,200-42,300 is an important resistance zone. Failure to surpass this zone can drag the Dow right down to 40,800 and even decrease within the coming weeks.
However, a sustained break above 42,300 shall be fairly bullish. It can then improve the probabilities of revisiting 45,000 ranges once more within the coming months.
Revealed on Might 10, 2025
