The benchmark index started the session on a weak note, tracking negative cues from GIFT Nifty amid heightened geopolitical uncertainty and a sharp rise in crude oil prices. The index began the session with a gap-down opening below a its pivotal juncture. Even the early attempt to recovery failed as sustained selling pressure from bears capped the rebound and intensified the sell-off during the second half of the session. Consequently, the benchmark closed over 0.53% lower, ending marginally above the 23860 zone.

Technically, the Nifty50 index has witnessed a decisive break down below all its key EMAs, reflecting a deterioration in short-term market structure and signalling a cautious near-term outlook. The index is currently hovering around a crucial support zone that has previously demonstrated resilience by triggering meaningful reversals, making it a critical level for the bulls to defend. On the downside, the 23800-23780 zone is expected to provide immediate support. However, a decisive breach below this range could accelerate selling pressure and trigger fresh short positions, dragging the index towards the 23650-23600 zone in intermediate basis. On the flip side, the 24000-24100 region is likely to remain a formidable resistance zone. Unless the index reclaims this hurdle with strong conviction and sustained buying momentum, the near-term bias is expected to remain fragile.

Going ahead, it is advised to stay abreast with the geopolitical developments which continue to act as the primary catalyst driving market sentiment. In the meantime, it is advised to refrain from aggressive positioning on either side until the trend gets clarity and focus on stock-centric approach.

Key levels to watch

NIFTY

Support: 23800 – 23650

Resistance: 24000 – 24100

BANKNIFTY

Support: 56300 – 55750

Resistance: 57000 – 57400

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