Mumbai, Oct 11 (SocialNews.XYZ) Indian equity benchmarks ended higher on Friday, breaking an eight-week losing streak, but market experts believe the sustainability of the rebound will depend on whether the indices can overcome key technical hurdles in the coming sessions.
The Nifty rose 1.3 per cent to close at 22,520.45, while the Sensex gained 1.23 per cent to settle at 72,472.33. Gains were led by information technology stocks after encouraging quarterly earnings and strong international business growth trends boosted sentiment.
For the week, the Nifty advanced 0.44 per cent and the Sensex rose 0.78 per cent. However, the recovery followed a prolonged correction during which the Nifty and Sensex had declined 8.7 per cent and 8.4 per cent, respectively, over the previous eight weeks.
According to experts, the recent gains indicate early signs of stabilisation, but confirmation of a sustained recovery will require the indices to break above important resistance zones. Until then, volatility is likely to remain elevated.
"For the Nifty, the 22,200-22,250 zone is being viewed as a crucial support area, while 22,750-22,800 represents immediate resistance," experts stated.
Experts said a decisive break below 22,200 could revive the broader downtrend, whereas a sustained move above 22,800 may open the door for a rally towards 23,100 and 23,300.
Analysts noted that while the Nifty has managed to end its eight-week losing streak, a single week of gains is insufficient to confirm a trend reversal. Sustained buying interest and broader market participation will be critical for strengthening bullish momentum.
"Another key support range for the benchmark lies between 22,200 and 22,400. Holding above this area could help the index recover towards the 23,000-23,300 zone. Conversely, a breakdown below support may drag the Nifty towards 21,700-22,000," market watchers noted.
The Sensex has also shown signs of stabilisation after ending its eight-week losing run. However, experts pointed out that the index formed a High Wave candle on the weekly chart, a pattern typically associated with market indecision.
Experts identified the 73,000-73,200 zone as the immediate resistance area for the Sensex. "A decisive move above 73,200 could extend the recovery towards 74,000 and subsequently 74,600," analysts stated.
"On the downside, the 71,200-71,000 range remains a critical support zone. A sustained breach below 71,000 could indicate a resumption of the broader downtrend and trigger fresh selling pressure," market watchers noted.
Source: IANS
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