Indian stock markets saw benchmark indices Sensex and Nifty retreat on Thursday, closing lower after an initial positive start. The late-session selling pressure led both indices to form small bearish candles on their daily charts, signaling a potential shift in market sentiment.
Market observers interpret Thursday's trading as a breather following a sustained rally, noting that previous dips were consistently met with buying interest. However, current trends indicate a period of consolidation is likely, with a positive bias, until key resistance levels are decisively breached. Analysts point to a prevailing indecisiveness among market participants.
Sensex Outlook: Key Resistance and Support
The BSE Sensex closed at 77,988.68, down 122.56 points (0.16%). Shrikant Chouhan, Head Equity Research at Kotak Securities, noted significant selling pressure at higher levels, with the Sensex correcting nearly 1,050 points from its intraday peak. Chouhan identifies the 78,500-78,700 zone as immediate resistance. A sustained trade below this range could see the correction continue, potentially retesting levels between 77,300 and 77,000.
Nifty Outlook: Consolidation Expected
The Nifty 50 settled at 24,196.75, declining 34.55 points (0.14%). Rajesh Bhosale, Technical Analyst at Angle One, described the session as a necessary pause after a sharp rally exceeding 2,000 points in recent weeks. The index approached a crucial supply zone of 24,400–24,600, marked by key moving averages and retracement levels.
While no immediate signs of weakness are apparent, a fresh upward momentum would require a decisive breakout above this resistance. Until then, consolidation within a range is anticipated. Bhosale highlighted the bullish gap in the 24,000–23,900 zone as immediate support.
Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, echoed the consolidation sentiment, identifying 24,100 as a strong base for Nifty and 24,260–24,300 as a critical resistance band. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, added that Nifty's near-term uptrend remains intact, with potential for minor consolidation or a dip over the next one to two sessions before a rebound. Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, noted Nifty's second consecutive close above its 50-day EMA, pointing to 24,320–24,350 as a key resistance area.