The new week began on an ambivalent note, with NIFTY ending the session almost unchanged from the previous close. The index started the day on a weak footing, opening with a gap down following the resurgence of geopolitical tensions between Iran and the US. However, buyers responded swiftly after the opening bell, triggering a sharp recovery that helped the index recoup almost all of its early losses. As prices approached the previous session highs, selling pressure gradually emerged, capping any further upside. The index eventually ended the session at the 24211 mark, closing largely unchanged after a volatile trading day.

The sharp decline witnessed on Wednesday last week has altered the near-term technical structure, establishing a series of strong overhead hurdles for the index. That said, the repeated defense of lower levels by buyers is a clear testament to the presence of strong demand around key support zones. With persistent selling pressure at higher levels and equally strong buying interest on declines, the index has entered a phase of range-bound consolidation, with neither bulls nor bears able to establish decisive control. Going forward, unless the index secures a convincing close above the 24300 mark, it would be prudent to avoid chasing upside momentum. This level assumes added significance as it coincides with the high of a Bearish Anchor Column on the smaller-timeframe 1-minute 0.1% × 3 Point & Figure chart. In addition, the same zone aligns closely with a follow-through Double Top Buy, further reinforcing the importance of 24300 as an immediate resistance. The significance of this resistance cluster is further strengthened by the presence of the bearish overhead gap and the session high recorded during last Wednesday’s sell-off. On the downside, the 24050–24000 band, which coincides with the 20 and 50 DEMA, continues to act as the first line of support, followed by a stronger demand zone in the 23850–23800 region. While the presence of these support clusters lends confidence to the broader technical structure, fresh long positions should ideally be considered only after the index delivers a decisive breakout above the immediate resistance at 24300. Beyond this level, the 24500–24540 zone is expected to emerge as the next major resistance cluster and is likely to pose another significant hurdle to the ongoing recovery.

Despite the sluggish and lackluster price action in the frontline indices, the broader market continues to buzz with strong stock-specific moves. The breakouts witnessed in the NIFTY MIDCAP 50 and NIFTY SMALLCAP 50 indices, both representative of the broader market, are a testament to the continued outperformance of the broader market over the frontline indices. In the absence of any meaningful directional momentum in the benchmark indices, participants should continue to adopt a stock-specific approach, focusing on sectors and stocks exhibiting relative strength.

Key levels to watch

NIFTY

Support: 24050 – 24000

Resistance: 24300- 24400

BANKNIFTY

Support: 57700 – 57500

Resistance: 58500 – 58700

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