- Sensex Index has struggled for traction in the last week, but the incoming Q1 earnings and US-India trade negotiations could inject impetus.
Sensex Index (INDEXBOM: SENSEX) has been range bound since late June and investors are still looking for fresh catalysts before making decisive moves. The factors currently at play include the performance of IT stocks like TCS, Wipro, Mahindra and Infosys whose Q1 earnings reports are in the pipeline. On the broader scale, investors are looking for clues from the impending US-India trade negotiations.
The Sensex Index was at 83,333 points at the time of writing, down by 0.2% in the intraday session. IT heavyweight TCS will release its Q1 earnings today and its figure will influence market sentiment. The company is seen as the market bellwether for India’s IT industry, being the second-largest company in that sector. Therefore, its heavy weight in both the SENSEX and Nifty 50 Indices will likely set the tone for the broader market.
Meanwhile, trade negotiations between India and US are still underway, with no deal having been reached by the initial deadline of July 9th. The two nations are reportedly haggling over access of US agricultural produce into India, which is adamant that its national interest must take precedence and is reluctant to lower the entry bar. The Trump administration has threatened to impose a unilateral tariff if the new August 1 deadline elapses. This sets up the Sensex Index for an extended period of headwinds in the intervening period. However, the two nations are considering a “mini-deal” that could provide some support.
Sensex Index Prediction
Sensex Index pivots at 83,515 points and the momentum favours action to the downside of that mark. The Index will likely find initial support at 82,900 points. However, an extended control by the sellers will break below that level and potentially test 82,170.
Conversely, breaking above 83,515 will signal control by the buyers. That will likely see upside movement meet primary resistance at 84,110. The downside narrative will be invalid above that level. A stronger momentum will clear that hurdle and could test 84,660 points.
