Business Team Investment Entrepreneur Trading discussing and analysis graph stock market trading,stock chart conceptAI Quick ReadIndian stock market: The Indian stock market ended on a lower note for a sixth straight week, slipping by nearly half a per cent amid heightened volatility driven by a blend of global and domestic uncertainties.
The holiday-shortened week started on a weak footing, as rising US-Iran tensions and a surge in crude oil prices dampened sentiment, leading to widespread selling.
On Thursday, the market closed FY26 on a subdued note, with the Sensex declining 1,635 points (2.22%) and the Nifty slipping 2.14%, amid widespread selling pressure across sectors.
According to Ponmudi R, CEO of Enrich Money, the stock market is expected to stay volatile in the week ahead, with movements largely influenced by global factors rather than domestic fundamentals.
Ponmudi further noted that investor sentiment will likely hinge on geopolitical developments in the Middle East, fluctuations in crude oil prices, currency movements, and foreign investor flows.
Any escalation in tensions or a persistent rise in oil prices could increase downside risks, while easing crude prices or improving global sentiment may prompt short-covering and offer temporary relief. Overall, markets seem to be reacting more to news flow than underlying trends, reflecting an absence of clear direction, he said.
Ajit Mishra, SVP, Research, Religare Broking, believes that given the prevailing macro uncertainty, elevated crude oil prices, and persistent FII outflows, investors should maintain a cautious and selective approach.
Portfolio allocation should remain tilted toward fundamentally strong large-cap stocks with better earnings visibility and robust balance sheets, Mishra opined.
“Traders should remain agile, avoid aggressive leverage, and adhere to disciplined risk management practices. With volatility expected to persist, adopting a hedged approach and prioritising capital preservation over aggressive positioning will be key until clearer directional signals emerge,” Mishra added.
On the Sensex outlook, Ponmudi said that Sensex is stabilizing near the 73,300 zone after recent volatility, but the overall structure remains fragile.
“Immediate resistance is placed in the 73,800–74,000 range, while a sustained move above 75,000 is required to improve sentiment meaningfully. On the downside, a break below 72,000 can extend the correction towards the 71,500–71,000 zone. Selective buying may emerge at lower levels, but strong conviction is still missing,” he added.
Meanwhile, Mishra of Religare Broking, believes that the index is gradually approaching its critical support base near the long-term weekly moving average (200 WEMA) at 21,930, followed by 21,750, which coincides with the April 2025 low.
“The recent price action indicates elevated volatility with sharp intraday swings, suggesting indecision at current levels. On the upside, immediate resistance is placed in the 23,000–23,200 zone, with a key hurdle around 23,500. A decisive move above this band could shift the bias positively and open room for a recovery towards 24,000,” Mishra said.
On the Bank Nifty outlook, Mishra explained that the banking index traded choppily and underperformed, reflecting pressure on rate-sensitive segments.
“The next crucial support is placed around 48,800 (200 WEMA), followed by 47,500. On the upside, resistance is seen in the 54,000–55,700 zone. A decisive breakout on either side will determine the next directional move,” he said.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.