The Indian equity market extended its recovery for a fourth consecutive session, opening the week on a positive note. Following a largely flat start, benchmark indices displayed resilience as buyers retained a modest advantage throughout trading session. Consistent support at lower levels sustained upward momentum despite intermittent volatility, portraying a higher lows formation in intraday. The Nifty50 index closed 0.30 percent higher, settling above the 23400 mark and reinforcing a constructive near-term outlook for domestic equities amid improving investor sentiment and broad-based market participation across key sectors.

The technical setup indicates a temporary respite following the recent sharp decline, supported by improving momentum indicators. The RSI has shown signs of a potential rebound from oversold territory, suggesting room for further recovery. Nevertheless, caution remains warranted, as the benchmark continues to trade below its short-term exponential moving averages, while the broader market structure remains fragile, suggesting we aren’t out of the woods yet. Accordingly, the current advance should be viewed as a technical pullback rather than a confirmed trend reversal. On the levels front, the immediate support is expected around 23300-23270, which can cushion any nearby shortcomings, while the critical support zone is positioned around 23123-23100. On the upside, 23500-23580 is likely to act as formidable barrier and only a decisive breakout above this range could restore confidence among bullish participants. Until greater clarity emerges, investors should closely monitor global developments, avoid aggressive positioning, and maintain disciplined risk-management practices while awaiting confirmation through sustained price strength and improving market breadth across sectors.

Looking ahead, investors should adopt a measured, step-by-step approach and maintain light positions until the market establishes a clearer directional trend. Pending a sustained breakout, emphasis should remain on selective, stock-specific opportunities supported by sound fundamentals and favourable technical setups. Participants should also closely track global developments, as evolving macroeconomic signals may influence domestic sentiment and provide meaningful catalysts for near-term market movement.

Key levels to watch

NIFTY

Support: 23300 – 23270

Resistance: 23500 – 23580

BANKNIFTY

Support: 56200 – 56000

Resistance: 56650 – 56800

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