Major Indian equity indices, the Sensex and Nifty, concluded Friday's trading session with half-a-per cent gains each, forming bullish candles on both daily and weekly charts. This technical formation suggests a positive underlying market sentiment heading into Monday's session, according to market analysts.
Sensex Outlook: Higher Bottom Formation
The Sensex registered a gain of 504.86 points (0.65%) to settle at 78,493.54. Amol Athawale, VP Technical Research at Kotak Securities, noted that the index found strong support near 75,800 during the week, leading to a sharp reversal and sustained positive momentum. Technically, the Sensex has formed a bullish candle on its weekly chart and a higher bottom formation on daily charts, indicators Athawale considers largely positive.
- Support Levels: 77,500 and 77,000
- Resistance Levels: 79,500 and 79,800
Athawale suggests a 'buy on dips and sell on rallies' strategy for traders, indicating that while the short-term market texture is bullish, some volatility may persist.
Nifty Outlook: Sustained Uptrend
The Nifty also advanced by 156.80 points (0.65%), closing at 24,353.55. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed a long bull candle on the daily chart, which overlapped the previous session's bear candle, signaling a strong uptrend with minimal downward corrections. Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, highlighted Nifty's ability to hold above its 50-day EMA and its achievement of three consecutive weeks in the green – a first since November 2025.
- Immediate Support: 24,100 (Shetti), 24,200–24,180 (Shah)
- Immediate Resistance: 24,400 (Shetti), 24,430-24,450 (Shah)
A sustained move above the 24,400 hurdle could open the path towards 24,800 in the near term, according to Shetti.
Broader Market Factors for the Week Ahead
Beyond technical charts, several macroeconomic and corporate events are likely to influence market sentiment. Ankur Punj, MD & Business Head at Equirus Wealth, pointed to the receding crude oil prices and anticipated second round of peace talks as factors keeping market mood upbeat. Positive developments from these talks could lead to an extended market uptick, albeit with a cautious bias.
Ajit Mishra, SVP – Research at Religare Broking, noted that the market would react to the results of banking heavyweights like HDFC Bank Ltd and ICICI Bank Ltd in early trade on Monday. Geopolitical developments will also remain on participants' radar. Mishra advises traders to maintain a positive yet cautious stance, focusing on sectors and themes showing strong traction with volumes, while avoiding averaging in lagging stocks. He sees a potential upside for Nifty towards the 24,600-24,800 zone, with an immediate base around the 23,900–24,100 range.
Disclaimer: This article provides general market information for educational purposes only and should not be construed as investment advice. Readers should consult with a qualified financial advisor before making any investment decisions.