D-Street Ahead: How will the Indian stock market move next week? Key technical levels for Nifty, Sensex

Nifty 50 trading near its three-week low with all major sectors ending in the negative territory. The index is showing signs of weakness and trading below the 21-day and 55-day moving averages. The MACD indicator has turned negative, and the MACD line has crossed below the signal line, suggesting a bearish trend. Additionally, Nifty is trading below horizontal support which is 23,350, which may likely to act as strong resistance level. Unless it sustains above 23,350, a sell-on-rise approach is preferred. The key support is placed at 22,800-22750 breaching below that may take it toward 22,500, and further downside could take it to 22,000, a key support level aligned with the 100-week EMA.

Bank Nifty closed in the red this week, falling 2.11% and forming a negative candle on the weekly chart. Prices are trading below the 21-day and 55-day EMAs, indicating weakness. Strong resistance is at 49,650, and a breakout above this level may push it toward 50,200. On the downside, support is at 48,700, this week’s low, and breaking below it could increase selling pressure toward 48,000. The overall market tone appears bearish, suggesting a sell-on-rise approach until a clear breakout occurs. Traders should watch support and resistance levels closely for further market direction.

Technically, multiple retests of the January low at 22,800 have weakened its significance, increasing the likelihood of further downside. The next key support levels are now seen in the 22,100-22,500 range. In the event of a rebound, the first major hurdle stands at the 20-day exponential moving average (DEMA) of 23,350, followed by resistance at 23,600. 

Amid the prevailing pessimism, the relative strength of two key sectors—banking and IT—has helped cushion the broader decline. Traders should closely monitor their performance for signs of a potential directional shift. Meanwhile, despite oversold conditions, we maintain a cautious outlook on broader indices and advise against bottom fishing or averaging down on losing positions.