Sensex, Nifty outlook for Monday: What charts suggest about underlying market sentiment

Sensex and Nifty rose half-a-per cent each on Friday to end the week on a positive note. The two benchmarks formed bullish candles on both daily and weekly charts. Buy on dips and sell on rallies strategy would be suitable for traders, said analysts who noted that the overall momentum may stay positive next week.   

On Friday, Sensex settled at 78,493.54, up 504.86 points or 0.65 per cent. Nifty ended at 24,353.55, up 156.80 points or 0.65 per cent. For the week, Nifty ended 1.30  per cent higher, while the Sensex gained 944 points. 

Sensex outlook
Amol Athawale, VP Technical Research at Kotak Securities said the Sensex took support near 75,800 during the week and reversed sharply. 

It held on to positive momentum. Technically, on the weekly chart, Sensex has formed a bullish candle, and on daily charts, it is holding a higher bottom formation, which is largely positive. In addition, the index is currently trading comfortably above short-term averages, which also supports a further uptrend from the current levels.

"We are of the view  that the short-term market texture is bullish, but a buy on dips and sell on rallies strategy would be suitable for traders. On the downside, 77,500 and 77,000 would act as key support levels, while 79,500 and 79,800 could be the key resistance areas for the bulls," Athawale said.  

Nifty outlook

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities  said Nifty formed a long bull candle was formed on the daily chart that overlapped the bear candle of previous session. Technically, this market action indicates strong uptrend in the market with minimal downward correction in between. 

"Nifty is currently placed at the hurdle of 24,400 levels and a sustainable move above this resistance could open the next upside towards 24,800 in the near term. Immediate support is placed at 24100," he said.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities said Nifty has been consolidating within a narrow range of 24,401–24,096 over the past three sessions. 

Importantly, it has managed to hold above its 50-day EMA and ended the last three weeks in the green, a first since the period between 10th and 24th November 2025, indicating a gradual improvement in underlying sentiment, he said. Shah sees immediate resistance for Nifty in the 24,430-24,450 zone. The range of 24,200–24,180 is to act as an immediate support.

Market outlook: What to watch next week?
Ankur Punj, MD & Business Head at Equirus Wealth said even as investors await the second round of peace talks to resume, the receding crude oil prices is keeping the mood upbeat. If the talks translates into some positive developments, one may see extended uptick in markets with a cautious bias. 

Ajit Mishra – SVP, Research at Religare Broking said the market would react to the results of banking heavyweights such as HDFC Bank Ltd and ICICI Bank Ltd in early trade on Monday. 

"Besides, developments on the geopolitical front will also remain on participants’ radar. Technically, the Nifty is gradually inching higher, indicating a continuation of the recovery phase, though momentum remains measured. We maintain our view of a potential upside towards the 24,600-24,800 zone, with an immediate base placed around the 23,900–24,100 range," Mishra said. 

He asked traders to continue with a positive yet cautious stance, focusing on sectors and themes showing strong traction with volumes, while avoiding averaging in laggard stocks.