D-Street Ahead: How will Indian stock market move next week? Your trading strategy—key technical calls for Nifty, Sensex | Stock Market News

Equity benchmarks Sensex on Friday slumped over 900 points to crash below the 76,000 level due to an across-the-board sell-off, tracking weak global markets amid growing global trade war fears.

Besides, heavy selling in market heavyweights Reliance Industries, Larsen & Toubro and Infosys and a sharp correction in global crude prices, indicating recessionary fears, added to the gloom, analysts said.

The Nifty 50 fell 2.61% to 22,904.45 for the week and the BSE Sensex dropped 2.65% to 75,364.69. The indexes declined 1.5% and 1.2%, respectively, on the day.

The market capitalisation of BSE-listed firms slumped by ₹9,98,379.46 crore to ₹4,03,34,886.46 crore (USD 4.73 trillion).

During the week, the BSE Sensex tanked 2,050.23 points or 2.64 per cent, while the NSE Nifty declined 614.8 points or 2.61 per cent.

Technical Outlook: Caution Ahead

Technically, the Nifty has broken below all major price and moving average supports, indicating potential for further downside. The immediate support lies at 22,600, while a decisive breach could open the door towards 22,100.

On the upside, any recovery is likely to face stiff resistance in the 23,100–23,400 zone. Interestingly, the banking index is displaying strength and could continue to outperform. It has immediate support at 50,700, with stronger support around 50,000. If the index breaches 52,800, it may pave the way for fresh highs.

The divergence between Nifty and the banking index could provide some cushion against an aggressive decline.

Strategy: Stay Nimble, Trade Selectively

In the current setup, traders are advised to maintain a “sell on rise” strategy for the index until a clear reversal or a retest of the 22,100 support level occurs. As earnings season begins, stock- specific action is likely to dominate, presenting opportunities on both the long and short sides.

Banking and financial stocks continue to display consistent strength and could remain in favor. Meanwhile, traders should navigate the broader market volatility with caution, and consider hedging long positions using index puts.

With uncertainty prevailing, agility and sectoral preference will be key to navigating the choppy waters in the days ahead.