The new week began on a despondent note for Indian equity markets, with relentless selling pressure dominating proceedings. Markets opened with a gap down, as signaled by GIFT NIFTY. However, the lower opening failed to provide any respite, as sellers continued to exert control throughout the session, with prices steadily drifting lower through the day. The index eventually settled at the 22780 mark, registering a loss of 1.56%.

Prices continued to decline for another trading session following a bearish opening, as the technical structure remains firmly bearish, and market sentiment has also turned increasingly negative. With prices now slipping below the crucial 23000 mark, this erstwhile support is likely to act as an important hurdle on any recovery going forward. That said, on the 0.25% Point & Figure chart, 22750 represents an open count as well as a crucial cluster count, suggesting the possibility of demand emerging around this level. This zone also coincides closely with the 78.6% retracement of the entire upswing from the lows recorded in March earlier this year. The 40-brick Donchian channel, on the 0.5% Renko charts, also stands placed in the same price location. Hence, some demand emergence in the 22750–22700 band cannot be ruled out. But it also important to reiterate, that trends across all timeframes and charting systems remain firmly aligned to the downside, and participants should for now refrain from any bottom fishing. Going forward, any recovery towards key resistance zones could therefore be utilized to initiate short positions, in line with the prevailing bearish trend. In terms of levels, 23100-23000 is an important hurdle on the upside, while on the downside, 22750-22700 is an immediate support, followed by a stronger support 22400-22350 band.

Traders and investors should adopt a measured and cautious approach as of now and maintain light positions, as trend remains aligned to the downside. We should continue to 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.

Key levels to watch

NIFTY
Support: 22750- 22700
Resistance: 23000- 23100

BANKNIFTY

Support: 54100– 54000

Resistance: 55000– 55200

Hitesh Rathi, Technical Analyst -Equity & Derivatives, Angel One.