The monthly expiry brought respite to the benchmark index as the initial struggle to defend the pivotal zone was effectively overcome during the latter half of the session. Bulls demonstrated resilience around the 50 DEMA, while the CAS closure supported a recovery above the 20 DEMA. Overall, it was an eventful expiry session, with Nifty50 index reclaiming the crucial 24300 zone amid a decent surge of 0.48%, reflecting renewed buying interest and improved market sentiment.

The technical setup has marginally tilted in favour of the bulls, with the 14-day RSI registering a positive crossover and the Nifty50 reclaiming the crucial 20 DEMA. Furthermore, the recent turnaround from the confluence of the 50% Fibonacci retracement level, along with the 50 and 100 DEMA, highlights a robust support zone around the 24200 sub-zone. This is followed by the sacrosanct support at 24050, corresponding to the golden retracement level. On the upside, the formation of a ‘Bullish Engulfing’ candlestick pattern signals a potential bullish reversal and keeps the intermediate hurdle of 24450-24500 firmly in focus. A sustained move above this resistance band could reinforce the prevailing positive momentum and potentially pave the way for further upside in the coming sessions, provided the broader market structure remains supportive.

Broader participation across the Midcap segment and key sectors is likely to provide further impetus to market momentum. Given the favourable technical setup, the Midcap index appears well positioned to outperform, creating attractive opportunities across the broader market for traders. Accordingly, it would be prudent to maintain focus on thematic movers and adopt a strategy of using meaningful declines as opportunities for gradual accumulation, while keeping the broader trend and market conditions in perspective.

Key levels to watch

NIFTY

Support: 24200- 24050

Resistance: 24450- 24500

BANKNIFTY

Support: 57200 – 57000

Resistance: 57900 – 58000

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