The benchmark indices witnessed a highly volatile trading week, characterized by sharp swings amid persistent global uncertainties, rising bond yields and crude oil prices, currency market fluctuations, and the RBI’s rate hike. These factors weighed on investor sentiment and kept the markets under pressure throughout the week. However, a notable rebound from the 52-week low during the final trading session helped the Nifty50 index to break its losing streak. Supported by the late recovery, the index managed to end the week on a positive note, gaining 0.44 percent and settling a tad above the crucial 22500 mark.

After eight consecutive weeks of sustained selling pressure, which dragged the benchmark index down by over 10% and pushed key technical indicators into deeply oversold territory, the bulls finally staged a recovery, bringing the prolonged losing streak to a halt. While the broader technical structure remains weak, with the formation of lower bottoms indicating a persistent bearish trend, the index is approaching a crucial support zone, coinciding with the lows recorded in April 2026 and April 2025. Additionally, the formation of a ‘Doji’ candlestick on the weekly chart offers a glimmer of hope for a potential relief rally. However, the overall market outlook remains cautious, with a decisive breakout above the previous swing high still required to signal a meaningful trend reversal.

From a technical perspective, the 22200-22000 zone emerges as a crucial support threshold, and any decisive breach below this range could weaken the near-term market structure further, potentially accelerating selling pressure towards the 21750-21700 levels. On the upside, the immediate resistance is placed around 22750-22800, followed by the psychological 23000 mark. A sustained move above these resistance zones would be essential to provide near-term relief and revive buying momentum.

Until the index establishes a convincing recovery above these levels, a cautious approach backed by disciplined risk management remains prudent. Meanwhile, market participants should maintain a stock-specific focus amid the ongoing quarterly earnings season, carefully assessing corporate performance and earnings outlook while closely monitoring evolving global developments.

Key levels to watch

NIFTY

Support: 22200 – 22000

Resistance: 22750 – 22800

BANKNIFTY

Support: 54800 – 54500

Resistance: 55750 – 56000

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