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

Snapping its two-day winning streak, the 30-share BSE Sensex slipped 7.51 points to end at 74,332.58. During the mid-session, it climbed 246.34 points or 0.33 per cent to hit an intraday high of 74,586.43.

However, the broader Nifty of NSE edged up 7.80 points to close at 22,552.50. During the day, the 50-share barometer rose 89 points or 0.39 per cent to hit a high of 22,633.80.

During the week, the BSE Sensex climbed 1,134.48 points or 1.55 per cent high, and the NSE Nifty rose 427.8 points or 1.93 per cent.

Sensex, Nifty, and Bank Nifty technical levels to watch

From a technical perspective, Nifty faces a crucial hurdle at its 20-day Exponential Moving Average(DEMA) near 22,700. A sustained move above this level, supported by banking stocks, could push the index towards the 23,200-23,400 range. However, a close below 22,250 may stall the recovery and lead to a retest of the key support zone between 21,800 and 22,000.

Similarly, in the banking sector, a decisive breakout above 49,000 on the Bank Nifty—its 20 DEMA—could provide the necessary momentum to propel the index toward the 50,000 mark.

D-Street trading strategy for next week

Given the prevailing scenario, investors are advised to maintain a positive yet cautious approach. Stock selection should focus on companies demonstrating relative strength and strong upside potential. The broader indices have approached their initial resistance levels, making it prudent to limit aggressive positions and avoid adding to loss-making trades at this juncture. 

With key global and domestic events lined up, market volatility is expected to persist. Investors should stay vigilant, track crucial data points, and make informed decisions based on emerging trends.