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The Sensex is likely to consolidate between 74,000 and 75,200 in the near term, while the Nifty may face immediate resistance around 23,500 and could see further downside if it slips below last week's low, analysts said on Sunday, as Indian equities enter a holiday-shortened week after five consecutive weeks of losses. 

The Indian stock market will remain closed for trading on Monday, September 14, on account of Ganesh Chaturthi. Investors will return to the market on Tuesday after benchmark indices ended the previous week under pressure from elevated crude oil prices, rising global bond yields and concerns over persistent US inflation.

Looking ahead, analysts said the broader technical outlook for the Sensex remains sideways, with the index expected to consolidate in the 74,000–75,200 range in the near term. Holding the 74,000–74,160 support zone could keep the recovery attempt intact and allow the index to retest the 75,000–75,200 levels.

“A decisive breakout above the resistance zone would strengthen the outlook and open the door for further upside, while a break below 74,000 could bring renewed selling pressure. For now, the market remains cautious but shows signs of resilience after the sharp recovery from lower levels,” market experts said.

For the Nifty, analysts said a sustained move above 23,500 could signal a pullback towards the 23,650 level in the coming sessions. However, failure to reclaim 23,500 could keep the index in consolidation mode within the 23,230–23,500 range.

“Immediate bias in the index remains down and a follow-through weakness below last week's low of 23,231 will open downside towards the short-term support placed around the June low of 23,070 levels in the coming week,” analysts said.

The Sensex declined 2.27 per cent over the week to close at 74,781.76, while the Nifty fell 2.09 per cent to settle at 23,398.10. The broader market also remained weak, with the Nifty Midcap index declining 1.40 per cent and the Smallcap index slipping 0.88 per cent.

On Friday, however, domestic equities recovered sharply from their intraday lows as crude oil prices eased following their recent rally. The moderation in oil prices triggered buying in oil-sensitive stocks, while the recent sell-off pushed benchmark indices into oversold territory, prompting value buying at lower levels.

The Nifty recovered 0.72 per cent from its intraday low before ending Friday 0.34 per cent lower at 23,398.10. The Sensex also staged a strong recovery from the day's lows, although it finally closed 0.16 per cent down at around 74,780.

They added that the current downtrend would show signs of a pause only after the formation of a higher high and higher low on a sustained basis on the daily chart.