The Indian equities faced significant selling pressure as benchmark indices declined amid heightened global concerns and domestic uncertainty over IRDAI’s proposed commission reforms. Following weak cues from GIFT Nifty, the benchmark index opened sharply lower and remained under sustained pressure throughout the session. The absence of any meaningful recovery kept the index on a downward trajectory, ultimately closing near 23060, down 1.64%, reflecting broad-based weakness across sectors and subdued investor sentiment during the trading day, with risk aversion remaining firmly elevated.

The technical structure has weakened considerably following a decisive breakdown below the anticipated cushioning zone of 23123. The broad-based sell-off has raised concerns over the near-term trajectory of Indian indices, with market breadth remaining firmly skewed in favour of the bears. Going ahead, the 23000 mark embarks significance as the immediate and crucial support zone, offering the possibility of some temporary respite. However, a sustained breach below this mark could intensify selling pressure and potentially drag the Nifty towards the 22900-22820 zone over the intermediate term. On the upside, the bearish gap formed in the 23280-23350 region is likely to act as a key resistance zone and may cap any technical rebound, potentially inviting renewed selling pressure. Given the prevailing weakness, traders are advised to exercise extreme caution and avoid aggressive positioning. Any technical pullback should preferably be viewed as an opportunity to reduce or lighten existing long positions rather than as a signal to initiate fresh positions or attempt bottom-fishing.

The broader market structure remains fragile, with significant selling pressure extending across the Midcap and Smallcap segments. In such an environment, maintaining disciplined risk management becomes particularly important. The sharp surge in India VIX, which rose by over 22% in a single session, further underscores heightened market uncertainty and elevated volatility. Accordingly, investors should remain cautious and prioritize capital preservation amid prevailing market turbulence.

Key levels to watch

NIFTY

Support: 23000 – 22900
Resistance: 23250 – 23280

BANKNIFTY

Support: 55200 – 54900
Resistance: 55800 – 56200

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