Nifty 50, Sensex, Bank Nifty: Key levels to watch this week

Sensex touched a high of 77,492 and has come off from there. The region between 76,300 and 76,000 is very good support. Resistance is around 77,800. We expect Sensex to sustain above 76,000 and breach 77,800 in the coming days. Such a break can take it up to 78,500-79,000 and higher. The rise gets delayed only if Sensex declines below 76,000. A fall to 75,300 and lower is possible.

Medium-term view is unchanged. Sensex is stuck inside the broad 71,000-86,000 range. Within that it is moving up. Intermediate resistance is around 80,000. A break above it can take Sensex up to 86,000. An eventual break above 86,000 can strengthen momentum and open the doors for 90,000 and 94,000 in the long term. The bullish view gets negated only if the index falls below 71,000.

Nifty Midcap 150

The 21,700-23,000 range remains intact. The index has moved up within that and has come closer to the upper end. Another strong resistance is around 23,150. The index has to break 23,000 and then get a subsequent rise above 23,150 to gather fresh bullish momentum. Such a break will trigger a fresh rally to 26,000-26,500 in the medium term. It will also keep the upside open for the index to target 28,000-28,500 in the long term.

Failure to rise above 23,000 or 23,150 can keep the index inside the sideways range for some more time. The short-term picture turns negative only if the index breaks below 21,700. That looks less likely. If such a break happens, the index can fall to 21,000-20,800. The long-term bullish view goes wrong only if the index declines below 20,800.

Nifty Smallcap 250

The rise last week indicates the index could be gaining momentum. Crucial resistance is the 18,000-18,300 region, which can be tested this week. The bias is positive to breach 18,300 eventually. Such a break can take the index up to 22,500-23,000 and even 24,000 in the long term.

Failure to breach 18,300 can take the index down to 17,600-17,500. The short-term outlook turns negative only if the index declines below 17,500. A fall to 17,200 can be seen. For the long-term bullish outlook to go wrong, the index has to decline below 14,000.