Indian stock market: The Indian stock market closed the week in the red, snapping their three-week consolidation trend, weighed down by ongoing geopolitical tensions in West Asia, continued weakness in the rupee, and mounting inflation concerns.
On Friday, benchmark indices Sensex and Nifty 50 ended their two-session gaining streak as investors booked profits amid weak global market sentiment, a sharp rise in crude oil prices, and the rupee slipping to a fresh record low against the US dollar. The Sensex declined 161 points, or 0.21%, to close at 75,237.99, while the Nifty 50 dropped 46 points, or 0.19%, to settle at 23,643.50.
Stock market outlook for next week
According to Ponmudi R, CEO – Enrich Money, markets are likely to stay highly volatile and sensitive to headlines in the coming week, with investor sentiment largely dependent on developments related to the ongoing US–Iran conflict, diplomatic efforts, and trends in global energy markets.
Ponmudi further noted that overall sentiment remains cautious as investors balance hopes of a diplomatic resolution against the increasing risk of an extended geopolitical crisis and energy market disruption.
“Markets are likely to remain extremely sensitive to any developments linked to the Strait of Hormuz, given its critical importance to global energy supply chains. Any credible diplomatic progress or easing in tensions could trigger short-covering rallies across equities, support emerging market sentiment and help moderate crude oil prices,” he added.
Key technical levels to watch out for next week –
Sensex
On the Sensex outlook, Ponmudi said that the index is currently trading near the 75,200–75,300 zone, reflecting a cautious recovery undertone amid persistent global uncertainty and volatile market conditions.
“Immediate resistance is placed in the 75,600–76,000 range, while key support is seen around the 74,500–74,200 zone. A decisive breakout on either side is likely to determine the next directional move for the broader market,” said Ponmudi.
Nifty 50
On the Nifty 50 outlook, Aakash Shah, Technical Research Analyst at Choice Broking, said that on the upside, immediate resistance levels are placed at 24,000 and 24,250. On the downside, support is seen at 23,250 and 23,000.
“A breakdown below the 23,000 mark could trigger further selling pressure in the near term. Considering the current market setup, traders are advised to remain disciplined and follow strict stop-loss strategies amid ongoing volatility,” Shah said.
Bank Nifty
Meanwhile, on the Bank Nifty outlook, Shah added that the index briefly slipped below its 20-DEMA, 50-day EMA, and 200- DEMA, signalling weakening short-term momentum and a deterioration in the prevailing trend structure.
“In the near term, immediate downside support is placed in the 53,200–53,000 zone in case selling pressure re-emerges. On the upside, 54,400 acts as immediate resistance, while 54,850 stands as the next key supply zone,” he said.
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