It was a buoyant session of trade for NIFTY, as buyers extended the ongoing winning streak to the fifth consecutive session. Starting the day on a muted note, bulls continued to maintain control and gradually pushed prices higher despite some intraday volatility. However, a sharp buying surge towards the fag end of the session further reinforced the dominance of buyers, with the index securing a day-high close at the 24168 mark, registering gains of 0.34%.

On the daily chart, prices have convincingly taken out the prior swing high near the 24100 mark and secured a close above this crucial level. This has resulted in the formation of a higher high after nearly two months, which, along with the presence of a higher low, marks an important prerequisite for establishing an uptrend. That said, while there are currently no clear signs of trend reversal or buying exhaustion, some caution is warranted at higher levels. The formation of relatively small-bodied candles over the past few sessions, coupled with the lack of a strong follow-through move intraday, suggests that momentum has moderated. Selling pressure has been visible from higher levels, with buyers stepping in mainly around the lows of the day to support prices. While this does not negate the improving technical structure, it highlights the possibility of some consolidation or intermittent dips as the index approaches higher resistance zones. Another noteworthy observation is that despite the sharp recovery in recent sessions, the 20 DEMA continues to remain below the 50 DEMA. Ideally, in a sustained uptrend, the faster moving average should move above the slower moving average, and the current setup suggests that some time-wise correction may be required before a stronger trend confirmation emerges.

We continue to advocate a stock-specific approach for now, as broader markets continue to witness healthy participation, and sectoral rotation remains evident. At the same time, participants should monitor key index levels for emerging opportunities. In terms of levels, the immediate support for NIFTY lies in the 24080–24050 band, followed by stronger support in the 23800–23700 zone. On the upside, the immediate resistance is placed near the 24250 mark, followed by a stronger hurdle at the 24450 level.

Key levels to watch

NIFTY

Support: 24080 – 23800

Resistance: 24250- 24450

BANKNIFTY

Support: 57500 – 56800

Resistance: 58400 – 59200

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