The Indian equity markets witnessed a volatile session during the weekly expiry of the benchmark index. After opening on a positive note and extending early gains, bullish momentum faded at higher levels, triggering profit booking in the second half. Further, the selling pressure intensified during the penultimate hour, erasing intraday gains and dragging the benchmark into negative territory. Despite heightened volatility, the Nifty50 index closed near the 24400 mark, ending the session with a modest decline of 0.13%.

The technical structure of the Nifty50 has seems unhindered following the recent close, while the broad-based selling pressure indicates a temporary pause in the prevailing bullish momentum. Despite the corrective move, the index continues to trade comfortably above its 100-DEMA, reflecting that the broader trend remains constructive. However, the loss of short-term momentum could result in a more challenging trading environment over the coming sessions. From a technical standpoint, the 24300-24250 zone is expected to act as a crucial support area, likely absorbing near-term declines and providing stability to the index. On the upside, the 24500-24600 range represents a significant resistance zone, and only a decisive breakout above this band would confirm the resumption of a stronger upward trend. Until such a breakout materializes, traders should adopt a selective approach by utilizing market dips to accumulate long positions while avoiding aggressive buying at elevated levels.

Also, with the earnings season set to commence, markets are expected to witness heightened volatility alongside stock-specific opportunities. Investors should maintain disciplined risk management, adopt a selective approach while initiating positions, and prioritize capital preservation amid evolving market conditions.

Key levels to watch

NIFTY

Support: 24300 – 24250

Resistance: 24500 – 24565

BANKNIFTY

Support: 57850 – 57500

Resistance: 58700 – 59000

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