The global headwinds and surging crude oil prices continued to weigh on Indian equities. The benchmark index once again showcased weakness, rather remained largely range-bound throughout the session, with repeated attempts to stage a meaningful recovery failing to gain traction. Consequently, the Nifty50 index slipped towards the day’s low during the latter part of the session. However, a revival following the CAS based settlement helped the index recover from its intraday lows. Eventually, the Nifty50 snapped its losing streak, closing modestly higher by 0.20 percent at 23478.

From a technical perspective, the 14-day RSI has slipped into oversold territory, while several other oscillators are also indicating signs of extreme exhaustion. Nevertheless, persistent headwinds continue to weigh on the index, limiting the sustainability of any recovery attempts. The recent decline has been sharp and largely vertical in nature, with most technical parameters now reflecting oversold conditions. This raises the possibility of a pullback, provided supportive triggers emerge. Hence, it would be prudent to avoid aggressive positions on either side and wait for signs of stabilization before taking a decisive directional view.

On the levels front, 23370-23350 is now expected to act as an immediate support zone, while a sustained breach could drag the index towards 23250, followed by 23150-23050. On the upside, favourable triggers could offer some respite, with 23570-23630, representing the recent bearish gap, likely to be retested. Sustained acceptance above this zone would be crucial for further recovery towards 23800, which remains a formidable hurdle.

Going forward, it would be prudent to closely monitor global developments, as they are likely to serve as key catalysts in shaping the intermediate trend of domestic markets. Given the prevailing uncertainty, participants should avoid aggressive positioning ahead of the extended weekend and maintain a cautious approach.

Key levels to watch

NIFTY

Support: 23350 – 23250

Resistance: 23570 – 23630

BANKNIFTY

Support: 56200 – 56000

Resistance: 56700 – 57000

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