Positive global cues enabled the benchmark index to open firmly during the weekly expiry session. Following a prolonged phase of subdued participation, the bulls appeared to regain control, driving a resilient and sustained recovery throughout the day. The positive momentum remained broad-based, with buying interest evident across sectors. The Nifty50 index maintained its upward trajectory and eventually settled near the day’s high. Overall, the index gained nearly a percent, comfortably closing above 22770 zone, signaling renewed strength and improving market sentiment.

The benchmark index continues to face a broadly weak technical setup. However, its recent rebound from oversold levels, supported by an improving RSI, points to the possibility of a reversal. While it is still too early to signal a decisive turnaround, sustained improvement across key technical indicators could strengthen market confidence and pave the way for a meaningful near-term pullback. On the levels front, the 22900-23000 zone is likely to pose a formidable hurdle, and only a sustained breakout above this range could revive the buying momentum in the index. On the downside, the 22600-22500 band is expected to provide support against any shortcomings, while 22300 remains the key threshold. A decisive break below this level could significantly weaken the prevailing technical setup.

Going ahead, the upcoming RBI monetary policy is likely to set the tone for near-term, while the commencement of the quarterly earnings season could further amplify volatility. Investors should remain vigilant on key domestic developments alongside evolving global concerns and position themselves accordingly. Maintaining a disciplined approach, with prudent risk management, will remain crucial amid the prevailing uncertainty.

Key levels to watch

NIFTY

Support: 22600 – 22500

Resistance: 22900 – 23000

BANKNIFTY

Support: 54800 – 54500

Resistance: 55500 – 55700

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