Sensex, Nifty, Nifty Bank outlook for tomorrow: Buying momentum over? Key market levels to watch

Benchmark indices, Sensex and Nifty fell over 1 per cent, while Nifty Bank tumbled 1.5 per cent, to snap five sessions of consecutive gains. The price action suggests selling at higher level, said analysts even as they believe the underlying momentum has not weakened despite profit booking.  
For the day, the BSE Sensex ended at 76,631.65, down 931.25 points or 1.20 per cent. The Nifty barometer closed the day at 23,775.10, down 222.25 points or 0.93 per cent. Nifty Bank settled at 54,821.70, down 1.58 per cent.

Sensex outlook
Hitesh Tailor, Technical Research Analyst at Choice Equity Broking said Sensex is witnessing consolidation after a sharp rally, with price action indicating resistance near higher levels and support emerging on dips. Tailor said key technical levels suggest that support is placed in the 75,900–76,300 zone, which is likely to act as a demand area.

Resistance is seen at 76,900–77,100 zone, where upside may face selling pressure. "The near-term outlook remains cautiously positive but volatile, with profit booking at higher levels and ongoing geopolitical concerns are likely to keep the market range-bound. Dips may continue to attract selective buying interest," the analyst said.

Nifty outlook
Dhupesh Dhameja of SAMCO Securities said the 0.382 Fibonacci retracement placed around 23,770–23,750 now acts as a make-or-break level for Nifty. Holding above this band may keep the pullback structure intact, while a decisive break below it could lead to filling of the unfilled gap formed in the previous session, he said.

"The momentum indicators remain supportive, with RSI sustaining above the 50 mark, suggesting that the underlying momentum has not weakened despite the profit booking. On the upside, the next key hurdle is placed near the 0.50 Fibonacci retracement around 24,260, which coincides with the 50-EMA, creating a strong confluence resistance zone. A sustained move above 24,000–24,250 could open room for a sharper recovery towards 24,500," he said.

Nifty Bank outlook
The banking benchmark underperformed the frontline indices on Thursday, ending the session with a decline of 1.58 per cent. On the daily chart, the index formed a bearish candle with a minor lower shadow, indicating selling pressure at higher levels, though some buying emerged near the lows. 

Despite the weakness, Bank Nifty continued to trade above its 20-day EMA, suggesting that the short-term structure remains intact, said  Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.

"Going ahead, the 55,300–55,400 zone will act as an immediate resistance for Nifty Bank, while on the downside, the 54,400–54,300 range is expected to provide crucial support for the index," Shah said.