Sensex, Nifty outlook for today: Gift Nifty rises 75 points; key levels to watch

While Gift Nifty is hinting at a positive start for benchmark indices on Friday, analysts said the consolidation phase may continue, asking traders to adopt sell-on-rise and buy-on-dips strategy within a specified range until a clear breakout emerges. On Friday, Gift Nifty was trading 74.50 points, or 0.31 per cent, higher at 24,232. The 50-pack Nifty had declined 205.05 points, or 0.84 per cent, to close at 24,173.05 on Thursday. Sensex had settled 852.49 points, or 1.09 per cent, lower at 77,664.

Sensex outlook
Hitesh Tailor, Technical Research Analyst at Choice Equity Broking said Sensex is witnessing rejection near higher levels and showing signs of short-term weakness, with selling pressure emerging on every rise. Key technical levels suggest that support is placed in the 77,000–77,100 zone, which may act as a crucial demand area, he said. The resistance is seen around 78,200–78,300, where upside is likely to face supply pressure, he said.

For day traders, said, Shrikant Chouhan, Head Equity Research, at Kotak Securities, the 50-day SMA (Simple Moving Average) at 78,200 would act as an immediate resistance zone for Sensex.

"Below this level, the correction wave is likely to continue. On the downside, the index could slip to 77,000. Further downward movement may continue, potentially dragging the index to 76,700. On the upside, a move above 78,200 could lead to a bounce back towards 78,500-78,800.

Nifty outlook
Rupak De, Senior Technical Analyst at LKP Securities said the index has found resistance around the 100-EMA, leading to a fall towards lower levels. On the lower end, it found support at the 10-EMA on Thursday, before closing slightly higher.

"On Friday, if it falls below 24,150 decisively, it might decline towards 23,900. However, if it moves above 24,200, it could rise towards 24,500–24,600. A decisive breakout from the 24,150–24,200 range is required to witness a directional move in the Nifty," he said.

Rajesh Bhosale, Technical Analyst, Angel One said after failing to cross the 61.8 per cent retracement level around 24,600, Nifty has witnessed a correction over the past two sessions, indicating a loss of bullish momentum. Technically, after a sharp rally of more than 2,000 points, the index appears to be undergoing a healthy cool-off, especially after approaching key retracement and moving average levels.

"This phase of consolidation may persist amid ongoing uncertainty surrounding the US–Iran geopolitical developments. On the upside, the 24,500–24,600 zone remains a key resistance, and unless this band is decisively breached, the range-bound action is likely to continue," he said.

Traders are advised to adopt a buy-on-dips and sell-on-rise approach within this range until a clear breakout emerges. On the stock-specific front, some pockets witnessed sharp declines, reinforcing the need for selectivity.

"The pharma sector stood out with broad-based buying, and given its defensive nature and current momentum, it may continue to outperform in the near term amid prevailing uncertainties," he said.