Weekly Outlook: Key levels to track on Sensex; Nifty headed towards 24,600?

Share Market Outlook: NSE Nifty could face interim resistance around 24,250 and 24,435, show technical charts. Here are the key levels to watch out on Sensex, MidCap and SmallCap indices this week.

Last week, the Nifty reclaimed the 24,000-mark after a gap of two trading weeks amid heightened volatility as the index NSE benchmark index swung in a band of 760 points. The market experienced a downtrend in the early part of the week, as a result of which the Nifty hit a low of 23,460. Thereafter, the NSE index recouped losses and rallied sharply to a high of 24,227. The Nifty finally ended the week with a gain of 0.8 per cent or 192 points at 24,005.  Similarly, the BSE benchmark - the Sensex touched a low of 77,561, and soared to a high of 80,273 - up 2,712 points from the week's low. The Sensex eventually ended the week 0.7 per cent or 524 points higher at 79,223.  The Nifty MidCap 150 index surged 1.7 per cent, and the SmallCap advanced 1.5 per cent. The broader Nifty 500 index was up 1.2 per cent for the week.  A sell-on-rally sentiment prevails in the market due to a strong US dollar, high valuation, and a shift towards a multi-asset investment strategy. Reducing US jobless claims and potential policy shifts in the US indicate that the FED is not in a hurry to reduce interest rates in the near term, said Vinod Nair, Head of Research at Geojit Financial Services in a note.  Looking ahead, the market is likely to focus on Q3 earnings, with expectations of improvement in earnings on a QoQ basis, the analyst added.  Among individual stocks - ONGC, Maruti Suzuki and Eicher Motors, up 9 per cent each, were the major movers among the Nifty 50 index last week. Bajaj Finserv, Bajaj Finance, Adani Enterprises, Tata Motors, Shriram Finance, IndusInd Bank and Mahindra & Mahindra were the other top gainers - up 5 - 8 per cent each. On the losing side, Wipro, Hindalco, ICICI bank, HDFC Bank and Dr.Reddy's ended with losses of 3 - 5 per cent each.    In the broader market - ITI was the biggest gainer; the stock zoomed over 39 per cent and was followed by Lloyds Metals which rallied 22 per cent. IREDA, Oil India, Avenue Supermarts (DMart), Blue Star and Vodafone Idea were among the 16 out of the Nifty 500 stocks that surged over 10 per cent each. On the flip side, Triveni Engineering plunged over 10 per cent. Cyient, Jindal Stainless, Crompton Greaves Consumer Electricals, Thermax, Prestige Estates and Apollo Tyres were the other prominent losers.  Market Outlook for the week January 06 - January 10:  BSE Sensex  Last close: 79,223  Support: 78,550; 78,200; 77,865  Resistance: 80,200; 80,580  Given the over 2,700 points swing last week, the BSE Sensex could swing in a wide range of 77,550 - 80,900 this week. Near support for the Sensex can be expected around 78,550 levels; below which support is seen at 78,200 and 77,865 levels. On the higher side, interim resistance for the BSE benchmark index can be expected around 80,250 and 80,580 levels.    Nifty  Last close: 24,005  Support: 23,900; 23,618  Resistance: 24,190; 24,435  The Nifty bulls are seen strongly defending the 50-WMA (Weekly Moving Average) on the index thus far. Since mid-November the Nifty has repeatedly found support around this key moving average, which now stands at 23,618. The Nifty last traded below its 50-WMA in April 2023.  Further, select key momentum oscillators on the daily chart too have turned positive. Given the current set-up, the Nifty may attempt a pullback towards the 20-WMA, which now stands at 24,606. The 20-WMA now coincides with the 100-day (Daily Moving Average), which stands at 24,626. Interim resistance for the NSE index can be expected around 24,190 and 24,435 levels. CLICK HERE FOR THE CHART  In case of a decline, the 200-DMA at 23,900 is likely to act as a strong support followed by the all-important 50-WMA.    Nifty MidCap 150  Last close: 21,419  Support: 21,060; 20,550  Resistance: 21,860; 22,085  The Nifty MidCap index is seen consolidating around its 20-WMA for the last six weeks. The index is likely to gyrate in the 20,150 - 22,600 range; until a clear breakout takes place. Interim resistance for the MidCap index is placed at 21,860 and 22,085 levels; whereas, support on the downside is visible at 21,060 and 20,550 levels. CLICK HERE FOR THE CHART  Nifty SmallCap 250  Last close: 17,973  Support: 17,900; 17,050  Resistance: 18,340; 18,635  The Nifty SmallCap index is expected to consolidate in the broad range of 16,700 - 18,900. In the week ahead, the SmallCap index could seek support around 17,900 and 17,050 levels. On the upside, the index is expected to counter resistance around 18,340 and 18,635 levels. CLICK HERE FOR THE CHART