Stock Market Prediction: Bull or Bear—Who’s Set To Rule Dalal Street Next Week? Check BSE Sensex, Nifty 50 & Nifty Bank Forecast

Stock Market Prediction Next Week: Indian equity benchmarks wrapped up the week with a subdued performance, reflecting a lack of conviction among investors and traders. The Sensex fell by 343 points over the past five trading sessions, while the Nifty 50 lost nearly 170 points.

According to Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research (Equity) at SBI Securities, this period has been marked by low volatility and compressed trading ranges, making it particularly difficult for active traders to identify clear opportunities.

The Nifty 50 index traded in one of its narrowest weekly ranges since early 2023, confined to just 338 points. This lack of movement signals that market participants are waiting for decisive triggers before committing to fresh positions. Despite this sluggishness, Shah noted that the broader structural trend remains positive because Nifty continues to trade above its short- and long-term moving averages.

However, the momentum indicators are starting to show caution. The daily Relative Strength Index (RSI) has slipped below 60 and is trending lower, suggesting fading strength in the recent rally. Additionally, the Fast Stochastic oscillator is below the slow line, and the MACD histogram has been declining for four consecutive sessions—both signs of possible short-term weakness.

Shah believes that traders should monitor the immediate support zone between 25,200 and 25,250 on Nifty. As long as this zone holds, the index has the potential to rebound. On the upside, the key resistance area is between 25,600 and 25,650. A decisive breakout above this range could lead to a renewed trending move, potentially setting the stage for further gains.

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The Sensex mirrored the Nifty 50’s hesitation and closed lower, reflecting the same indecisive sentiment. Although the longer-term uptrend is intact, the index, too, is lacking momentum and struggling to sustain buying interest. Market experts, including Shah, emphasised that a clear breakout in either direction will be needed to establish a new trend.

Meanwhile, the Nifty Bank index touched a fresh all-time high during midweek trading but failed to hold onto its gains. It closed the week with a loss of about 0.72%, forming a bearish candle on the chart. Despite this short-term throwback, Shah said the broader trend for Bank Nifty remains positive.

The immediate support lies between 56,600 and 56,500. As long as the index holds above this zone, Shah believes it could resume its upward trajectory and test 57,500, followed by 58,200 in the near term.

Sector-wise, several pockets of the market are showing strength despite the overall consolidation.

Consumer durables have been consistent outperformers over the past two weeks, clearly outpacing the benchmark indices. Shah pointed out that the ratio chart of Consumer Durables versus Nifty has broken out from a Falling Wedge pattern—a classic bullish setup that suggests sustained buying interest.

Pharma and healthcare have decisively broken out of a long consolidation phase on weekly charts. These sectors outperformed the broader market last week and are expected to continue their leadership in the coming sessions.

Oil & Gas has also started showing promising chart patterns. The sector has shifted from being an underperformer to gaining traction, with improving relative strength indicating that it could deliver outperformance in the short term.

Within this constructive sectoral setup, a handful of stocks are displaying strong bullish trends. According to Shah, Balkrishna Industries, BPCL, IOC, Chennai Petro, Engineers India, and KPR Mill are among the key stocks likely to continue their outperformance in the near term.

Globally, equity markets remain strong. The Nasdaq and S&P 500 hit fresh all-time highs during the week, while the Dow Jones is trading just below its record levels. A weakening US Dollar Index, which fell to its lowest level since February 2022, has also created a supportive environment for emerging markets like India.

At the same time, Brent Crude Oil has entered a phase of consolidation after a volatile spell, with prices moving within a tight range between $65.87 and $69.48. This indecision in crude oil is keeping commodity traders on edge, awaiting a breakout that could set the tone for future moves.

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