Optimism surrounding the US-Iran peace deal over the weekend provided a strong opening for domestic markets, with the benchmark index registering a gap-up start and sustaining gains throughout the session. Broad-based participation further supported market momentum at the beginning of the expiry week. As a result, the Nifty50 index closed above the 24000 mark, ending the day with a solid gain of 1.32%. Overall, the session reflected improved investor sentiment and healthy buying interest across key sectors in the broader market.

The broad-based participation, particularly from the banking and financial sectors, significantly improved market sentiment and helped the benchmark index reclaim the psychological 24000 mark following a brief consolidation phase in the last week. From a technical perspective, the index has recovered from a sluggish trading zone and moved decisively above its 20-day and 50-day EMA levels, indicating strengthening momentum. However, the immediate and critical resistance is positioned in the 24300-24350 range and a decisive breakout above this zone would invalidate the prevailing lower-high formation and could potentially signal the resumption of a sustained bullish trend. On the downside, the earlier resistance band of 23900-23800 is expected to provide near-term support in case of any pullback. Additionally, the 23650-23600 range is likely to remain a sacrosanct support zone, offering strong downside protection for the index in the near term.

Domestic market trends remain closely aligned with global developments; therefore, investors and traders should stay vigilant and continuously monitor the global cues. In the interim, until broader market direction gains greater clarity, traders are advised to focus on theme-based and sector-specific opportunities for short-term and intraday trading strategies.

Key levels to watch

NIFTY

Support: 23900 – 23800

Resistance: 24300 – 24350

BANKNIFTY

Support: 54800 – 54500

Resistance: 55800 – 56000

Osho Krishan, Chief Manager – Technical & Derivative Research, Angel One