Last week, it was highlighted that if the 26,300 level was decisively crossed, the bulls could continue their advance. On the other hand, if 26,061 was breached, a fresh corrective move toward the 25,551–25,318 zone could unfold. The week’s highest level, 26,179, was recorded early on Monday. The same day, Nifty closed lower at 25,960, confirming that the correction was set to continue. Over the next two sessions, the index declined further to 25,693, before staging a healthy rebound toward the end of the week and finally closing at 26,047. The U.S. Federal Reserve’s rate cut triggered a strong recovery across global markets, and its spillover effect was clearly reflected in Indian equities as well. Let us now review the key factors to watch in the coming days.
The Dow Jones Industrial Average closed last Friday just above the crucial resistance level of 48,300. Although sustaining this level on a closing basis until month-end remains a challenge, holding above it keeps the broader positive structure intact. If this level is maintained, immediate upside targets of 49,151–49,414 open up, followed by higher objectives at 54,902–60,636–61,480.
Gold ended last week’s trading at 4,328, just below the key resistance level of 4,345. A sustained close above 4,345 would allow gold to target 4,424–4,540–4,675. However, failure to close and hold above 4,345 could result in a corrective move toward the previously indicated 2,759 level.
The Dollar Index slipped to 98.02 last week. As long as it stays below 99.46, the bias remains downward, with the next important support placed near 96.97.
The Indian Rupee closed last week at 90.59. The immediate supports to watch are 90.23–89.90. Holding above these levels could open the door for a move toward 90.95–91.83, and eventually 94.10. A breakdown below 89.90 would shift focus to the 89.08–88.44 zone as the next major support area.
As noted earlier, Nifty closed the week at 26,047. The first key point to monitor in the coming sessions is whether the index can manage a close above 26,108. Above this, 26,202 and later 26,320 emerge as important resistance zones. On the downside, 25,977 is the immediate support. A close below this level would signal renewed selling pressure and could pull Nifty down toward the 25,500–25,200 range.
Bank Nifty ended last week at 59,390. If it continues to remain below 59,907, a corrective move toward 56,838 should be expected. A decisive close above 59,907 would shift attention to 60,284 as the next key level.
Last week, the bulls remained firmly in control mainly in the metal, commodity, infrastructure, and services sectors, which showed relative strength compared to the broader market.