Sensex Prediction April 28: Shooting star candlestick pattern suggests temporary weakness

Sensex Outlook for Tomorrow:

After ending Friday’s session in the red, domestic markets — Sensex and Nifty — still managed to post a weekly gain of around 1%, despite profit-taking pressure towards the end. On Friday, the Sensex closed at 79,212.53, while the Nifty settled around the 24,000 mark.

Markets showed resilience earlier in the week, supported by stable global cues and fresh foreign institutional investor (FII) inflows, according to Ajit Mishra of Religare Broking. However, rising geopolitical tensions between India and Pakistan have sparked caution among investors.

Technical Indicators Point to Weakness:

Kotak Securities' Amol Athawale highlighted that both benchmarks breached crucial support zones at 24,100 (Nifty) and 79,300 (Sensex) while slipping below their 200-day Simple Moving Averages (SMA).

A reversal formation on the daily charts and a shooting star candlestick pattern on the weekly charts suggest temporary weakness may persist.

Trading Strategy for April 28:

Bajaj Broking Research advises maintaining a cautiously positive approach, favoring hedged positions in indices to manage volatility.

Sensex Key Levels to Watch:

Resistance: 80,000

Immediate Breakout Level: 79,600

Support: 78,600

According to Jigar Patel of Anand Rathi Stock Brokers, a breakout above 79,600 could pave the way for further gains, whereas a breach below 78,600 may trigger additional profit booking.

Athawale noted that if the market remains below the 24,100/79,300 zones, the correction could deepen toward 78,500 and possibly 78,200. However, reclaiming the 79,300 mark could revive bullish sentiment, potentially lifting Sensex toward 80,200–80,500 levels.

The Camarilla Pivot Outlook also highlights the 79,600–78,800 range as a crucial decision zone that could shape market moves.

Stock-Specific Opportunities:

Despite broader index volatility, analysts emphasize that stock-specific trades will offer rich opportunities on both the long and short sides. Investors should focus on setups with favorable risk-reward ratios.

Data to Watch:

Investors will closely track upcoming economic data, including the Index of Industrial Production (IIP) and the HSBC Manufacturing PMI Final, for fresh cues.

Disclaimer: Please consult a certified financial advisor before making any investment decisions