The Indian markets remained under pressure for the third consecutive session, with the benchmark index hovering near its 20-DEMA amid a weak bias. Although bulls showed some resilience around intraday lows, supporting a modest recovery, the momentum soon faded, resulting in another choppy session for the Nifty50. In the absence of any major market moving developments, the index eventually settled around 24400, registering a marginal decline of 0.16 percent and reflecting continued cautious sentiment among market participants.

On the technical front, the formation of an inside-bar pattern in the benchmark index reflects a degree of hesitation following the recent correction, indicating signs of exhaustion among the bears. Meanwhile, the 20-DEMA continues to act as a crucial support level, with the index oscillating around this key moving average, highlighting the prevailing uncertainty. As far as levels are concerned, the intermediate swing low of 24265 reflects a critical cushioning zone with any correction beneath is likely to aggravate the sell-off in the index, targeting the confluence of 50 and 100 DEMA around 24200-24150 zone. On the contrary, any technical pullback is likely to get tested with series of resistance zone placed from 24450-24500 to 24600 in the near period. Unless the index decisively surpasses these resistance levels, the broader setup is expected to remain cautious. Traders are therefore advised to maintain a measured approach, closely monitor the aforementioned levels, and avoid aggressive positioning until a clearer directional breakout emerges.

Going forward, with the quarterly earnings season drawing to a close, market participants are likely to await a meaningful trigger to revive market momentum. In the interim, traders should maintain a stock-specific approach and focus on relative strength, as the broader market continues to lack a clear directional bias.

Key levels to watch

NIFTY

Support: 24300 – 24265

Resistance: 24450 -24500

BANKNIFTY

Support: 57450 – 57200

Resistance: 58000 – 58250

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