Sensex Prediction for Monday, July 6 by experts: Benchmark equity indices extended their winning momentum for the third consecutive session on Friday, with the BSE Sensex closing higher amid a rally in IT stocks and a softer-than-expected US jobs data tempering expectations of near-term monetary tightening by the Federal Reserve. However, technical analysts believe the market may witness some consolidation at higher levels before attempting another move upward on Monday, July 6.
Sensex at close on Friday, July 3
The 50-share NSE Nifty went up 95.15 points, or 0.39 per cent, to end at 24,270.85.
Sensex top gainers and losers on Friday, July 3
Sensex Prediction for Monday, July 6 by experts
Stock market analysts are mapping out a cautiously optimistic trajectory for Monday, July 6, identifying specific ranges that will decide whether the rally continues or takes a breathing spell. Analysts expect buy-on-dips to remain the preferred strategy, with the 77,000-77,700 support zone emerging as the key area to watch.
According to Hitesh Tailor, Technical Research Analyst at Choice Equity Broking Private Limited, Sensex continues to trade above its short-term moving averages and remains in a higher high-higher low formation on the daily chart, indicating that the broader trend remains constructive despite intraday volatility.
However, the index witnessed selling pressure near the 78,150–78,200 zone, suggesting that higher levels continue to attract profit booking, he said.
On the intraday chart, he further said the index consolidated after the initial decline and managed to hold above its key moving averages, indicating buying interest on dips. “The RSI on the daily chart remains above the 60 mark, reflecting sustained positive momentum, although the intraday RSI cooled off after the early rally, hinting at a phase of consolidation,” Tailor stated.
“The BSE Sensex ended the week on a positive note, closing at 77,763.91, up 261.79 points (+0.34%). The index opened on a firm note at 78,152.34 and touched an intraday high of 78,157.52 in the opening session. However, profit booking at higher levels dragged the index lower towards an intraday low of 77,710.01 before recovering marginally to settle at 77,763.91,” Tailor said.
Sector-wise, buying interest was witnessed in Information Technology, Auto, Healthcare, Consumer Durables, Metal, Realty and FMCG stocks, which supported the benchmark. On the other hand, Capital Goods, Industrials, PSU Banks, Power and Utilities remained under pressure and capped the overall upside, he said.
Going ahead, Tailor expected 77,000–77,100 will act as an immediate support zone for Sensex. “As long as the index sustains above this level, the overall undertone is likely to remain positive and a move towards 78,400–78,500 cannot be ruled out. However, any decisive breach below 77,000 may trigger fresh profit booking and lead to short-term consolidation,” he concluded.
SEBI-registered analyst Vipin Dixena echoed a similar view, though he expects the market to remain cautious after Friday’s inability to sustain above 78,150.
“Sensex is witnessing profit booking after failing to sustain above the 78,150 resistance and is now testing the crucial 77,700 support zone. The index continues to trade above the 50-EMA, keeping the broader trend positive, but the RSI has slipped from overbought territory, indicating weakening short-term momentum,” Dixena stated.
He further said that a decisive break below 77,700 could drag the index towards 77,500, while holding this level may trigger a rebound towards 78,150.
For Monday, the analyst said, “Market sentiment remains cautiously positive as investors await the start of the Q1 earnings season, with pharma stocks continuing to provide support amid improving global cues and easing concerns over crude oil prices.”
Broader markets, sectoral indices on Friday, July 3
The BSE MidCap Select index declined 0.46 per cent and SmallCap Select index dipped 0.33 per cent.
Sectorally, realty surged 2.22 per cent, focused IT jumped 1.74 per cent, IT (1.55 per cent), healthcare (1.31 per cent), commodities (0.90 per cent), metal (0.89 per cent) and telecommunication (0.77 per cent).
Power declined 2.39 per cent, capital goods (2.26 per cent), industrials (1.45 per cent), utilities (0.58 per cent), auto (0.42 per cent) and consumer durables (0.32 per cent).
A total of 2,257 stocks advanced, while 1,986 declined and 198 remained unchanged on the BSE.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 311.82 crore on Thursday, according to exchange data.
On Wednesday, the Sensex jumped 579.48 points, or 0.75 per cent, to end at 77,502.12. The Nifty rallied 169.85 points, or 0.71 per cent, to settle at 24,175.70.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
