Weekly Market Wrap: Profit booking drags BSE Sensex, Nifty 50; IT slumps 8%, media shines
BSE Sensex and Nifty 50 indices ended the week in the negative territory. However, the midcap and the smallcap indices outperformed the larger peers. BSE 250 smallcap index saw gains of ~1%.
During the week, the market consistently faced selling pressure near the 26,000/84500 level. (Image: Freepik)
Global equity markets were strong over the past week, while the Indian markets underperformed over this period. BSE Sensex and Nifty 50 indices ended the week in the negative territory. However, the midcap and the smallcap indices outperformed the larger peers. BSE 250 smallcap index saw gains of ~1%.
The benchmark indices witnessed profit booking at higher levels last week. The Nifty ended 0.87 per cent lower, while the Sensex was down by 950points. Among sectors, the IT index lost the most, shedding over 8 per cent, whereas the Media index outperformed, rallying over 5 per cent.
During the week, the market consistently faced selling pressure near the 26,000/84500 level. Technically, after a promising uptrend, the market has formed a reversal pattern near the 26,000/84500 level, and it also formed a bearish candle on the weekly chart, which is largely negative.
“We believe that the intraday market texture is still on the weak side, but a fresh selloff is possible only if the market dismisses the 20-day SMA (Simple Moving Average) or 25,400/82500. Below this level, the market could extend the correction to 25,300/82200. Further downside may continue, potentially dragging the index to 25150-25100/ 81700-81500. On the upside, 25,600/83100 would act as an immediate resistance for the bulls. Above this, a pullback could continue towards the 50-day SMA, around 25,800–25,900/ 83700-84000,” said Amol Athawale, VP Technical Research, Kotak Securities.
For Bank Nifty, as long as it is trading below 60,500, weak sentiment is likely to persist. On the downside, it could slip to the 50-day SMA, around 59,500–59,200. On the upside, above 60,500, it could move up to 61,000–61,300.
Weekly Market Analysis by Gaurav Udani, Founder of ThincRedBlu Securities:
Nifty
• Nifty tried to move higher but got rejected near 26,009. That rejection was strong and profit booking followed.
• Price is now correcting the earlier news-driven rally. Short-term sentiment has turned cautious.
• Immediate support is at 25,490 – 25,520. Below this, the next important level is 25,250, which is the key structural support.
• As long as 25,250 holds, this looks like a normal correction, not a trend reversal.
• On the upside, Nifty needs to move back above 25,600 for stability and reclaim 26,009 to regain bullish momentum.
BankNifty
• BankNifty saw a sharp drop toward 57,800, but strong buying came in from that level.
• From there, price rallied quickly toward 61,600, showing strong recovery.
• However, it failed to sustain near the top and is now consolidating below the resistance zone.
• Key resistance remains at 60,444 – 60,876 – 61,600.
• Immediate support is at 59,644, with stronger support at 57,800.
• Above 60,900, momentum can resume toward 61,600.
• Below 59,600, downside toward 58,600 is possible. A break of 57,800 changes the structure to bearish.
Gold
• Gold is facing strong resistance in the 160000 – 165000 zone and has failed to break it convincingly.
• Higher lows are visible, but price remains within a broader range, with 143021 acting as an important structural level.
• If the support zone between 150000 – 140000 breaks, downside toward the next demand area becomes likely.
• A clean breakout above 165000 can open room for fresh upside targets.
• Until either side breaks decisively, expect volatility within the current range.
Silver
• After strong profit booking, silver is trading within a broad range of 2,64,000 – 2,31,000.
• Buyers are currently defending the lower end of this range.
• Immediate resistance stands near 2,64,000.
• If 2,31,000 breaks decisively, downside toward 2,03,000 – 2,01,000 becomes possible.
• Further weakness below that could extend toward 1,80,000.
• A sustained move above 2,64,000 can open room toward 2,85,000 – 2,90,000.
• Until a clear breakout occurs, expect range-bound volatility.
Nifty IT
• After nearly a 20% correction, Nifty IT has entered an important demand zone.
• Price is currently near 34.84 – 35.50, where earlier rebounds were observed.
• Below this level, the next strong demand zone lies around 32.5 – 31.8.
• It is better to wait and watch the price reaction within this zone.
• If weakness continues, price may move deeper before stabilizing.
• Patience is important — let the selling pressure cool before looking for confirmation
