Mumbai: benchmarks could remain in a consolidation phase in the holiday-shortened week, with analysts seeing 75,200 as a key upside level for the Sensex and 23,500 as an important resistance for the Nifty.
Markets will remain closed on Monday, September 14, for Ganesh Chaturthi. Trading resumes on Tuesday after five consecutive weeks of losses amid elevated crude oil prices, rising global bond yields and persistent US inflation concerns.
Sensex Support At 74,000
Analysts expect the Sensex to consolidate between 74,000 and 75,200 in the near term. Holding the 74,000 to 74,160 support zone could help sustain the recovery and allow the benchmark to retest 75,000 to 75,200.
A decisive move above 75,200 could strengthen the recovery and create room for further gains. However, a break below 74,000 could bring fresh selling pressure.
Nifty Faces 23,500 Hurdle
For the Nifty, analysts see 23,500 as the immediate resistance level. A sustained breakout above this mark could trigger a pullback towards 23,650 in the coming sessions.
Failure to cross 23,500 could keep the index confined within the 23,230 to 23,500 range.
Analysts warned that weakness below last week’s low of 23,231 could push the Nifty towards the June low and short-term support around 23,070.
The Nifty declined 2.09 per cent during the week to close at 23,398.10. The Nifty Midcap index lost 1.40 per cent, while the Smallcap index slipped 0.88 per cent.
Friday Recovery Offers Relief
Equities recovered sharply from intraday lows on Friday as crude oil prices eased and investors bought oil-sensitive shares following the recent sell-off.
The Nifty recovered 0.72 per cent from its intraday low before closing 0.34 per cent lower.
Analysts said a sustained higher high and higher low formation on the daily chart would be needed to indicate that the current downtrend is losing momentum.