Sensex Prediction for Wednesday, July 8: Benchmark stock indices ended marginally lower on Tuesday, July 7, due to last-minute profit-taking, ending a four-session gaining streak, amid weak Asian trends. The technical analysts, however, believe the broader bullish trend remains intact, with the 78,000 level emerging as the key support for the 30-share BSE Sensex ahead of Wednesday’s trade.
Sensex at close on Tuesday, July 7
Paring its early gains, the Sensex declined by 104.35 points, or 0.13 per cent, to close at 78,180.72. During the day, it climbed 379.85 points, or 0.48 per cent, to 78,664.92.
Sensex top gainers and losers on Tuesday, July 7
Sensex Prediction for Wednesday, July 8 by experts
Technical analysts expect the 78,000 mark to remain the decisive level for trading session on Wednesday. The market experts point to a clear consolidation phase, with the index hovering near key support levels that will dictate the short-term trajectory.
According to SEBI-registered analyst Vipin Dixena, the recent weakness appears to be a retest of a crucial technical support rather than a reversal of the prevailing trend.
Dixena, said, “Sensex witnessed profit booking after failing to sustain near 78,500 and has retested the crucial 78,000–78,100 support zone, which coincides with the rising 50 EMA, keeping the broader short-term trend positive. RSI has slipped to around 42, reflecting weakening momentum, but the index is yet to confirm a trend reversal.”
He further stated as long as 78,000 holds, a rebound towards 78,500 remains possible, while a decisive break below this support could extend the correction towards 77,700–77,800.
“Investors remain focused on the start of the Q1 earnings season and global trade developments, which are likely to dictate the market’s next directional move,” he added.
Sensex Prediction for Wednesday, July 8 by Hitesh Tailor
Echoing a similar view, Hitesh Tailor, Technical Analyst – Technical Research at Choice Broking, said the fall on Tuesday was largely the result of healthy profit booking following a sharp rally and does not signal any major deterioration in market structure.
The primary reason behind the weakness was profit booking after the benchmark indices had rallied nearly 3.06% over the previous four sessions, marking their highest closing levels in almost ten weeks. Investors chose to lock in gains near key resistance levels, leading to broad-based selling pressure across select sectors, Tailor added.
From a technical perspective, Tailor said the overall trend for Sensex remains positive despite the intraday weakness. “The recent breakout above the key resistance zone has improved the medium-term outlook, although the market is witnessing temporary consolidation after a sharp rally. Immediate support is placed near the 77,600–77,500 zone, while resistance is seen around 78,800–78,700. A sustained move above the resistance zone could revive bullish momentum and pave the way for a rally towards higher levels in the coming sessions,” he said.
Sectorally, weakness was primarily driven by Metal and Realty stocks, with the Metal index declining around 1% and the Realty index falling nearly 1.6%. The broader market also remained under pressure, as declining stocks significantly outnumbered advancing stocks, indicating a cautious undertone among market participants, the analyst said.
“Global cues also weighed on sentiment. Most Asian markets traded lower amid concerns over the sustainability of the global AI-driven rally and weakness in semiconductor stocks following Samsung Electronics’ earnings announcement. The sharp decline in South Korea’s KOSPI index and weakness in Nasdaq futures contributed to the risk-off sentiment across regional markets,” Tailor added.
Overall, Tailor said the decline appears to be primarily driven by healthy profit booking rather than any significant deterioration in market structure.
“As long as Sensex continues to hold above its immediate support levels, the broader bullish trend remains intact. However, traders should remain watchful of global market developments and sector-specific profit booking, which may keep volatility elevated in the near term,” he concluded.
Broader markets, sectoral indices on Tuesday
The BSE SmallCap Select index declined 1.08 per cent and MidCap Select index dipped 0.15 per cent.
Sectorally, Capital Goods dropped 1.73 per cent, followed by Realty lost 1.61 per cent, Industrials (1.49 per cent), Power (1.12 per cent), Metal (1.04 per cent), Commodities (0.90 per cent) and Hospitals (0.90 per cent).
Focused IT surged 2.25 per cent, IT jumped 2.12 per cent, Consumer Durables (0.65 per cent), MidSmall Private Banks Quality Tilt (0.55 per cent) and Oil & Gas (0.09 per cent). A total of 2,633 stocks declined, while 1,599 advanced and 165 remained unchanged on the BSE.
Foreign Institutional Investors (FIIs) bought equities worth Rs 243.03 crore on Monday, according to exchange data.
On Monday, the Sensex jumped 521.16 points, or 0.67 per cent, to settle at 78,285.07. The Nifty climbed 159.50 points, or 0.66 per cent, to end at 24,430.35.
(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.)
