The Indian stock market is likely to start the week on a positive note, supported by positive cues across global markets. The trend in Gift Nifty is indicating a gap-up opening for the benchmark indices. The index is trading at 25,914, almost 100 points higher than the previous Nifty futures close. The optimism comes after an increase in global markets with positive news regarding the US-China trade dialogue.

Market Recap

The benchmark indices concluded their six-day winning streak on Friday, amid profit-booking. Sensex lost 344.52 points, or 0.41%, to close at 84,211.88, while Nifty 50 dropped 96.25 points, or 0.37%, to finish at 25,795.15.

Despite the pause, analysts remain bullish on the overall market direction, citing healthy support levels and resilient bullish sentiment.

Sensex: Key Levels and Outlook

Sensex faced resistance after touching 85,290 last week, with traders turning cautious near record highs.

Analysts highlight that the index’s crucial support lies between 83,350 and 83,250. Resistance is expected near 84,700-84,800, and a breakout above 84,800 may lead to the 85,500 level.

Sensex remains structurally strong above 84,000,  meaning that any short-term pullbacks would be limited. A stabilization above 84,500-84,800 will lead to the possibility of further up trends, toward the previous record high of 85,978.

Nifty 50: Consolidation Before Next Leg Up

Nifty 50 formed a bearish candle on Friday, signaling mild profit-taking after a sharp rally. For the week, it was up 0.33% and formed a doji on the weekly chart, indicating temporary indecision.

Immediate support is at 25,600-25,500, and immediate resistance is at 25,950-26,000. A breakout above this level could push the index to 26,300.

According to experts, the overall structure remains positive as long as Nifty trades above the 20-day and 50-day EMAs with 25,400-25,500 acting as a buy-on-dips zone.

Bank Nifty: Range-Bound With Positive Bias

Bank Nifty decreased by 0.65% on Friday to 57,699.60, forming a red candle on the daily chart. Analysts anticipate a near-term consolidation but with a positive bias.

The key support is around 56,900-57,000, while the resistance is expected at 58,300-58,500. A move beyond 58,500 could lead to 59,000-59,500.

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Sectoral Trends

Sector-wise, banks and healthcare stocks experienced slight sell-offs while metals, real estate, and oil & gas sectors acted as a support to the market. The broader indices also reflected the cautious sentiment, with Nifty Midcap 100 and Smallcap indices dropping slightly by 0.24% and 0.21% respectively.

Overall, the market has a positive undertone that encourages investors to maintain a buy-on-dips strategy since the indices are consolidating near all-time highs.