The GIFT Nifty signalled a strong gap-up opening, supported by favourable global cues and broad-based optimism across international markets. In line with these positive indications, the benchmark index commenced the session on a robust note and sustained its upward momentum throughout the trading day. The impressive rally propelled the index decisively above the crucial 24500 mark, culminating in a remarkable gain of 2.40%. This stellar performance marked one of the strongest single-day advances in recent market history, reflecting renewed bullish sentiment and heightened buying interest.

The Nifty50 index has decisively reclaimed its crucial 200-DSMA for the first time in the current financial year, signalling a meaningful improvement in market sentiment and a revival of buying interest following an extended period of correction and consolidation. With the index witnessing an impressive rally of nearly 1500 points, it is now approaching a critical technical juncture, coinciding with a downward-sloping trendline drawn from the September 2024 high of 26277 and the June 2025 peak of 25670. Notably, this trendline had previously restricted the upward momentum in August 2026 and therefore warrants close monitoring as the index approaches it once again.

On the technical front, 24600, followed by 24750, is expected to act as an immediate resistance zone. Considering the sharp and near-vertical recovery witnessed recently, some degree of consolidation or profit booking cannot be ruled out. Hence, a prudent approach would be to partially book profits and lighten positions at elevated levels rather than chase the rally. On the downside, the 24300-24000 zone, representing the recent bullish gap, is likely to provide a strong cushion and may emerge as a potential accumulation area for short-term traders.

Going forward, we remain constructive on the broader market outlook and advocate a buy-on-dips strategy rather than aggressive fresh positioning at current stretched levels. Additionally, the focus should remain on sectoral rotation and emerging stock-specific opportunities, as selective participation and a stock-centric approach are likely to offer better prospects than indiscriminate exposure to the broader indices.

Key levels to watch

NIFTY

Support: 24300 – 24000

Resistance: 24600 – 24750

BANKNIFTY

Support: 57200 – 56800

Resistance: 58000 – 58200

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