Sensex could eye 79,700, Nifty 25,200 on breakout: Analysts

Mumbai, Aug 9 (SocialNews.XYZ) The near-term technical outlook for Indian equities remains constructive, with analysts expecting the Sensex to target 79,300–79,700 and the Nifty to move towards 25,200 if key resistance levels are decisively breached.

However, analysts said markets could see renewed profit booking if crucial support zones are broken. On the Sensex, the index maintained a positive technical structure and closed comfortably above the 78,000 mark.

Analysts said the 78,800–79,000 zone will be the immediate resistance area to watch in the coming sessions.

“On the downside, the 77,300–77,200 zone remains the immediate support area, followed by the 77,000 psychological level. Holding above these levels will be important to maintain the improving technical structure, while a decisive break below 77,000 could invite renewed selling pressure,” an analyst stated.

“Overall, the near-term technical outlook remains constructive, with sustained buying above the immediate resistance zones required to confirm further upside,” the analyst added.

The Nifty also continued to hold its broader bullish structure despite heightened volatility and intermittent profit booking during the week.

“From a technical perspective, the broader structure remains constructive as Nifty continues to trade above all the key weekly exponential moving averages, reinforcing the strength of the medium-to-long-term trend,” an analyst said.

“The overall chart structure continues to favour a positive bias, although the ongoing consolidation suggests that a decisive breakout is still awaited. 24,900–25,000 is expected to act as the immediate resistance zone, while 24,100–24,200 remains the key support area,” a market expert stated.

Meanwhile, Indian markets ended the week with moderate gains despite elevated volatility, as investors assessed the implementation of the new Closing Auction Session (CAS) framework for F&O stocks, the Reserve Bank of India’s monetary policy decision and ongoing geopolitical uncertainties.

For the week, the Sensex gained 0.52 per cent to close at 78,499.17, while the Nifty advanced 0.77 per cent to settle at 24,570.65.

The broader market continued to outperform the benchmark indices, with the midcap and smallcap indices rising 0.81 per cent and 2.61 per cent, respectively, suggesting continued stock-specific buying interest.

Source: IANS