Indian Stock Market Update

The Indian stock market closed the week largely flat with a slight negative bias, indicating cautious sentiment among participants. The Nifty 50 slipped 0.16% to end at 23,114.50, while the Sensex edged down 0.04% to settle at 74,532.96.

Market Outlook

The Indian markets are likely to remain highly volatile and event-driven in the coming week, with near-term direction largely contingent on developments in the Middle East. Ponmudi R, CEO of Enrich Money, noted that any prolonged disruption could keep crude prices elevated above the $100 mark, intensifying inflationary and current account pressures while sustaining a risk-off sentiment.

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Sectoral Outlook

A cautious and selective approach is advised by Ajit Mishra, SVP, Research, Religare Broking, given the fragile sentiment, persistent FII outflows, and ongoing global uncertainties. Pharma and select energy stocks may continue to attract interest, while metals could benefit from cyclical support. However, caution is advised in rate-sensitive and oil-linked sectors given elevated crude prices.

Technical Levels

Key technical levels to watch for in the coming week:

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• Sensex: 74,000 (key psychological and structural support), 73,600 (next support), 75,500 (immediate resistance), and 77,000 (major supply zone)
• Nifty 50: 23,850 (immediate resistance), 24,000 and 24,150 (next resistance levels), 22,950 and 22,700 (crucial support levels)
• Bank Nifty: 53,000–52,000 (downside targets), 54,000 (immediate resistance), 54,500 and 55,000 (next key supply zones)