Daijiworld Media Network - Mumbai
Mumbai, Jul 5: Indian benchmark equity indices are likely to extend their recent rally in the coming week, with market experts expecting the Sensex to move towards the 79,000 level and the Nifty to target 24,600, provided they sustain trading above key resistance zones.
The positive outlook follows a strong weekly performance by domestic equities, supported by favourable economic data, improving investor confidence and expectations of a softer global monetary policy environment.
Strong Goods and Services Tax (GST) collections, healthy industrial production figures and continued expansion in India's manufacturing and services sectors boosted market sentiment. Investors were also encouraged by weaker-than-expected US labour market data, which strengthened hopes that major global central banks could adopt a more accommodative policy stance.
Despite mixed global cues and a slight moderation in domestic services sector growth, Indian equities remained resilient throughout the week.
The BSE Sensex ended the week 0.86 per cent higher at 77,763.91, while the NSE Nifty 50 advanced 0.90 per cent to close at 24,270.80.
Technical analysts said the Sensex continues to maintain a bullish structure after holding above its recent breakout levels. The immediate hurdle for the index is seen in the 78,100-78,200 range. A sustained breakout above this zone could strengthen buying momentum and pave the way for a move towards the 79,000 mark.
On the downside, the 77,500-77,400 range is expected to serve as the first support level, with 77,000 emerging as the next important cushion. Holding above these levels will be essential for the market to maintain its broader recovery trend.
For the Nifty, analysts observed that the index remains technically strong as it continues to trade above its 100-day Exponential Moving Average (EMA) at 24,131 and has also closed above a key downward-sloping resistance trendline around 24,200.
The 24,050-24,150 zone is expected to provide immediate support during the week.
The next major resistance lies at 24,421, which coincides with the index's 200-day EMA. A decisive close above this level could trigger fresh buying and propel the Nifty towards 24,600, a level corresponding to the April swing high and considered the next significant target for the bulls.
Market experts believe that sustained buying above these resistance levels, coupled with supportive domestic macroeconomic indicators and favourable global policy expectations, could help extend the ongoing rally in Indian equities.