It was a lackluster week of trade for NIFTY, as prices moved sideways without exhibiting any meaningful directional momentum. After starting the week on a negative note, the index found stability near the pivotal support and showcased some stability. Thereafter, prices remained confined within a well-defined range of nearly 300 points, reflecting an intense tug-of-war between bulls and bears for control of the trend. Amidst some intraday volatility on the final trading day, the index eventually wrapped up the week at the 23366 mark, registering losses of 0.77%.

On the daily chart, prices continued to remain confined within the ongoing four-day trading range, despite some intraday volatility following the MPC announcement on the final trading day, resulting in no meaningful change to the overall technical structure. Despite the outperformance exhibited by the banking index during the week, NIFTY failed to build on the strength, suggesting a lack of broad-based participation. On the weekly chart as well, a well-defined range has emerged, with the upside capped near the 24000 mark, which aligns closely with the 20-WEMA and continues to act as a formidable resistance zone. On the downside, the index remains well supported in the 23200–23100 band. The shorter-term setup suggests that a move above the 23550 mark could trigger fresh upside momentum. On the other hand, a breakdown below the 23200–23100 support zone is likely to shift the balance in favor of the bears, paving the way for further selling pressure and opening the door for a potential decline towards the 22700 level. That said, the repeated defense of the lower support band clearly indicates the presence of strong demand at lower levels and tilts the scales marginally in favor of the bulls.

As long as prices continue to remain range-bound, adopting a strategy of buying near support levels and booking profits or selling near resistance zones is likely to yield better trading opportunities. At the same time, participants should closely monitor the prevailing short-term range for a breakout or breakdown on either side and position themselves accordingly in the direction of the eventual move.

Key levels to watch

NIFTY

Support: 23200 – 23100

Resistance: 23550 – 23600

BANKNIFTY

Support: 54100- 53900

Resistance: 54800 – 55200

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