The Indian equity markets began the new week on a subdued note, tracking signals from GIFT Nifty amid mixed global cues over the weekend. Selling pressure persisted throughout the session, with bears firmly in control and bulls largely absent. Consequently, the Nifty50 index witnessed a steady decline towards its 20-DEMA and settled near the intraday lows. Eventually, the index closed at 22888, registering a notable decline of 1.11 percent for the session.

The pause following the recent rally was largely driven by broad-based profit booking ahead of the mid-week holiday. From a technical perspective, the formation of a strong bearish candlestick and the index slipping below the psychological 23000 mark signals caution. However, confirmation from the subsequent trading session remains essential to validate the prevailing trend. On the downside, the 22770-22720 zone is expected to provide immediate support, while a decisive breach could extend the correction towards the 22500 level. Conversely, the 23000 mark remains a crucial resistance zone. A sustained move above this threshold could revive buying interest and improve market sentiment, potentially paving the way for an upward move towards the 23250-23280 zone in the coming sessions. Until then, a cautious approach remains advisable, with market participants closely monitoring key technical levels for directional cues.

Going forward, market participants should closely monitor developments during the mid-week holiday for cues on the intermediate-term trend. Meanwhile, traders are advised to adopt a stock-specific approach and focus on selective opportunities until greater clarity emerges regarding the broader market direction.

Key levels to watch

NIFTY

Support: 22770 – 22720

Resistance: 23000- 23150

BANKNIFTY

Support: 55200 – 54800

Resistance: 55900 – 56200

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