Mumbai, May 31: Market experts have indicated that the Sensex and Nifty may face pressure next week due to global instability, particularly if they fail to break through key resistance levels. This statement was made by analysts on Sunday.
Analysts noted that volatility was observed in the last 30 minutes of Friday’s trading session, attributed to the MSCI index rebalancing, leading to a significant drop in stock prices by the end of the day.
Regarding the technical outlook, experts mentioned that the Sensex continues to show a negative trend as investors remain cautious, with weak buying interest at higher levels.
One analyst stated, “Technically, the immediate resistance level for the Sensex is around 75,800-76,000, while the range of 76,500-76,700 remains a major resistance and supply zone.”
Another analyst added, “In the event of a decline, immediate support is seen in the 74,500-74,200 range. Staying above this area will be crucial to prevent further weakness, while a decisive break below could increase downward pressure.”
Meanwhile, uncertainty surrounding the U.S.-Iran agreement and the volatility linked to the MSCI rebalancing, effective after Friday’s market close, resulted in heavy selling in the final hour, leading to a sharp decline in the market.
Throughout most of the trading session, both the Sensex and Nifty remained within a limited range as investors exercised caution. However, market sentiment deteriorated rapidly by the close, resulting in significant selling pressure across all sectors.
The 30-share Sensex closed down 1,092 points or 1.44 percent at 74,775.74, having seen a drop of nearly 1,300 points during the day. The Nifty also experienced a substantial decline, closing down 359 points or 1.50 percent at 23,547.75, with a low of 23,485 during the day.
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