The new monthly expiry began on a tepid note yet again. Following a muted start and some initial selling pressure, buyers managed to lift prices higher, taking the index back towards the previous day’s close. However, a bout of profit booking in the second half erased the early morning gains, with prices eventually settling near the day’s lows at the 22620 mark, registering a loss of 0.42%.

The technical setup continues to remain bearish, with no meaningful signs of a trend reversal emerging on the index front. The inability of buyers to sustain any meaningful intraday recovery highlights heightened selling pressure at relatively higher levels. Further, prices closing near the lower end of the previous session’s Doji candle indicate acceptance of levels that were rejected during the prior trading session. That said, while the broader trend remains firmly aligned to the downside, the current price location warrants attention, given its proximity to the yearly lows and a crucial support level on the Point & Figure chart. The 22500–22450 band represents the lows of an Anchor Column on the 1% P&F chart, which has remained intact since early 2025. This raises the possibility of demand emerging around these levels. The proximity to this crucial support zone, coupled with oversold readings across breadth indicators, and increasing disparity between price and short-term moving averages, points towards the possibility of a relief rally over the coming sessions. It is also pertinent to note, a break below the above-mentioned support band, is likely to exacerbate selling pressure and invalidate some historical bullish set ups and open much lower price probes on the index. In terms of levels the 22550-22450 band is an immediate support, followed by a stronger support at the 22200-22100 band. On the flip side, 22800-22850 band is an immediate resistance, followed by a stronger resistance in the 23000-23100 band.

Some buying interest appears to be emerging in the MIDCAP index, as indicated by the formation of a probable Bullish Piercing Line pattern on its candlestick chart. However, given the prevailing bearish trend and setup across all frontline indices, a measured approach remains warranted, with risk-managed positions being considered selectively in fundamentally and technically strong stocks.

Key levels to watch

NIFTY

Support: 22550- 22450

Resistance: 22800- 22950

BANKNIFTY

Support: 54400– 54000

Resistance: 55000– 55100

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