The GIFT Nifty indicated for a flat start to the Indian benchmark index, coupling to which the Nifty50 index showcased a muted start but soon after underwent to steep correction. However, the bulls demonstrated resilience and staged a healthy recovery from the early decline, resulting in a volatile first hour of trade. Thereafter, the index remained largely range-bound, with limited price movements and subdued activity. Amid these developments, the Nifty50 concluded the session on a muted note, registering a marginal gain of 0.05% and settled around the 24580 zone.

The technical setup remains largely unchanged, with minimal price action in the benchmark index. The formation of a ‘Doji’ candlestick reflects indecisiveness among market participants and highlights the absence of clear directional bias. Meanwhile, the Advance-Decline ratio also presents an even-steven picture, further indicating a lack of conviction in the prevailing trend.

On the levels front, the 24500-24450 zone is expected to provide immediate support and cushion any downside pressure, while the 20-DEMA, placed around 24340, is likely to act as a crucial positional support zone. On the upside, 24650-24700 remains a key resistance band, where strong rejections were witnessed during the previous week. This is followed by the 24760, corresponding to the 200-DSMA, which is likely to pose a formidable hurdle. A decisive breakout above these levels could only revive bullish momentum and potentially pave the way towards the 25000 mark. Until then, traders are advised to closely monitor these levels and act accordingly.

Going ahead, sectoral rotation is likely to remain in focus, making it prudent to track thematic movers for potential outperformance. Meanwhile, considering the weekly expiry, volatility could intensify and might trigger a breakout from the prevailing range. Hence, market participants should remain vigilant and closely monitor emerging developments.

Key levels to watch

NIFTY

Support: 24450 – 24350

Resistance: 24650 -24760

BANKNIFTY

Support: 57450 – 57250

Resistance: 57900 – 58200

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