A devastating session for the equity markets, with the Nifty plummeting over 2%. The index opened on a weak note, tracking subdued global cues and a rise in crude oil prices amid renewed global tensions. However, selling pressure intensified during the final hours, triggering a broad-based market sell-off. The Nifty50 index declined by over 400 points from the day’s high levels, eventually closing a tad below the 23900 zone.

The technical setup for the index has turned significantly weak, with key support levels breaking decisively amid the announcement related to Iran truce. In the sharp reversal, the Nifty index breached its 100, 50, and 20 DEMA simultaneously in a single session, marking one of the most notable declines in recent market history. The price action reflects a highly bearish structure, with broad-based selling pressure intensifying across sectors. Volatility is expected to remain elevated as uncertainty continues to dominate investor sentiment. The sharp rise in the fear index, India VIX to 14.68, reflecting an intraday surge of nearly 26%, highlights the prevailing caution in the market.

On the levels front, the immediate support zone is placed in the vicinity around 23780-23750, followed by 23650 regions. On the upside, 24000-24140 is likely to act as an intermediate resistance zone, with further hurdles near 24250.

Going forward, strong whipsaw moves should not be ruled out and any aberrations from the global front may adversely impact the chart structure. It is advisable to stay abreast with developments surrounding the US-Iran situation and avoid adopting an aggressive stance amid the ongoing correction. It would be prudent to await signs of stability and improved market structure before initiating fresh positions.

Key levels to watch

NIFTY

Support: 23780 – 23650

Resistance: 24000 – 24140

BANKNIFTY

Support: 56400 – 56000

Resistance: 57250 – 57500

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