The monthly expiry session concluded on a subdued note, with the Nifty50 ending nearly flat at 22750. Tracking cues from GIFT Nifty, the benchmark index opened with a mild negative bias but witnessed buying interest during the first half of the session. However, a sharp mid-session correction eroded the initial gains and pushed the index into negative territory. Subsequently, a recovery during the penultimate hour helped the index regain lost ground, culminating in a subdued close amid mixed market sentiment.

From a technical perspective, the market structure remains largely unchanged, with the Nifty50 settling almost flat after a narrow, range-bound session on the monthly expiry day. The index continues to trade below its 20-DEMA, which remains a critical hurdle for any meaningful recovery. Unless a sustained upward move emerges, the near-term undertone is likely to remain challenging. On the levels front, the 22600-22500 zone is expected to provide a crucial cushion against intermittent bouts of selling pressure. On the flip side, 22850 is likely to act as an intermediate resistance, while the 23000 mark remains a formidable barrier. A decisive move beyond these resistance levels would be essential to improve the prevailing technical outlook. Given the lack of directional clarity and the prevailing uncertainty, the overall market stance remains cautious. Accordingly, traders are advised to avoid aggressive directional bets and maintain a disciplined approach until a clearer trend emerges.

Going forward, the BankNifty index has exhibited relative weakness, with a retest of its previous swing low warranting caution. However, the recovery in the mid-cap and small-cap indices indicates improving resilience across the broader market. This divergence favours a stock-specific approach, with selective opportunities taking precedence over aggressive index-level positioning.

Key levels to watch

NIFTY

Support: 22600 – 22500

Resistance: 22850 – 23000

BANKNIFTY

Support: 53700 – 53500

Resistance: 54350 – 54700

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