After a stunning turnaround in previous session, NIFTY once again started the day on a subdued note, opening with yet another gap-down. However, in line with the recent trend, buyers stepped in as prices approached a crucial support zone, triggering a swift recovery that erased all the early morning losses. Thereafter, amidst some intraday volatility, prices consolidated their gains and eventually secured a day-high close at the 23416 mark, registering marginal gains of 0.05%.

With prices now fluctuating within a three-day trading range, no significant changes have emerged in the overall technical structure. On the daily chart, the formation of an Inside Bar candlestick today further underscores the lackluster price action. The pattern suggests that traders are now awaiting fresh cues, with the upcoming MPC announcement likely to serve as the much-needed catalyst for the next directional move. Going forward, a breakout on either side of this short-term range is likely to provide the market with a clearer directional cue. A breakout above the 23500–23550 zone, which also serves as the immediate resistance band, could trigger fresh upside momentum. On the other hand, a breakdown below the 23150–23100 support zone is likely to shift control back in favour of the sellers. In terms of pivotal levels, the 22750–22700 band, which coincides with the 78.6% Fibonacci retracement of the prior rally, is expected to act as a strong support zone. On the upside, the 23670–23900 region remains a formidable resistance band and is likely to pose a significant challenge to any sustained recovery attempt.

Participants should closely monitor the above-mentioned levels for any breakout or breakdown and position themselves accordingly. Until then, as highlighted in our earlier commentaries, a strategy of buying near key support levels and booking profits or selling near resistance zones may continue to be adopted while the market remains range bound.

Key levels to watch

NIFTY

Support: 23200 – 23100

Resistance: 23550 – 23600

BANKNIFTY

Support: 53900 – 53800

Resistance: 54800 – 55200

Hitesh Rathi, Technical Analyst -Equity & Derivatives, Angel One