The bulls maintained firm control over the Indian equity markets, driven by an impressive buying spree throughout. The benchmark indices opened on a positive note and witnessed some consolidation at elevated levels, followed by a brief bout of profit booking. However, buyers swiftly seized the opportunity to accumulate positions at lower levels, triggering a strong recovery and pushing the indices towards the day’s highs. Consequently, the Nifty50 extended its gains, closing near the day’s peak at 23960 zone, registering a healthy 0.63% advance and reinforcing positive market sentiment.

The winning streak extended into its fifth consecutive session, highlighting the underlying bullish undertone and a meaningful improvement in overall market sentiment. The participation of the broader markets, coupled with sectoral rotation, has emerged as a key catalyst supporting the ongoing rally. Additionally, improving global cues and renewed foreign institutional investor (FII) inflows into Indian equities have further strengthened the positive momentum.

From a technical perspective, the Nifty50 is gradually approaching its 200-DSMA, a crucial resistance zone that has historically witnessed selling pressure and subsequent rejections. Hence, some caution is warranted at the current juncture. Moreover, following a sharp vertical rally of nearly 1000 points, intermittent profit booking cannot be ruled out and should be viewed as a healthy development rather than a sign of weakness.

On the levels front, a decisive breakout above the psychological 24000 mark could unlock further upside towards 24100 and eventually, 24300 in the near term. Conversely, any corrective retracement towards the 23750-23600 zone could offer a favourable accumulation opportunity, provided the broader market structure remains intact. Overall, the outlook remains constructive, with a cautious approach advisable near key resistance levels.

Going forward, the positioning of key indices will remain crucial, as most are approaching significant resistance zones. At the current juncture, investors are advised to adopt a stock-specific approach, focusing on selective opportunities with strong fundamentals and technical setups. Aggressive directional bets on benchmark indices should be refrained, particularly following the sharp vertical rally witnessed in recent sessions.

Key levels to watch

NIFTY

Support: 24000 – 24100

Resistance: 23750 – 23600

BANKNIFTY

Support: 55500 – 55150

Resistance: 56200 – 56500

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