The persistent weakness in global cues triggered a negative opening for Indian equities, with the benchmark indices commencing the session on a gap-down note. Volatility remained elevated throughout the day as bulls and bears engaged multiple times in a firm tug-of-war. However, despite intermittent recovery attempts, bears maintained the upper hand, pushing the Nifty closer to the day’s low. Following the CAS closure, the Nifty50 index settled below the pivotal zone around 23430, registering a decline of 0.86% for the session.

The overall technical structure continues to remain fragile, with persistent selling pressure evident across the broader market. The Advance-Decline ratio remains firmly skewed in favour of bears, highlighting the underlying weakness. Furthermore, a majority of key technical indicators have slipped into or are approaching oversold territory, warranting a cautious approach in the near term. From a levels perspective, the next immediate support is placed around the 23380-23350 zone. A decisive breach below this range could open the door for further weakness towards the 23250-23200 zone, which may emerge as the next potential demand area. On the upside, the bearish gap between 23570-23630 is expected to act as an intermediate hurdle, while the 23800 mark remains a formidable resistance in the near term.

Going ahead, amid the ongoing sell-off and persistent weakness in global markets, investors are advised to closely monitor evolving developments and refrain from taking aggressive positions. Prudent risk management remains essential in the current volatile environment. Rather than drawing premature conclusions on the broader trend, it would be advisable to await signs of stabilization and confirmation.

Key levels to watch

NIFTY

Support: 23350 – 23250

Resistance: 23570 – 23630

BANKNIFTY

Support: 56000 – 55700

Resistance: 56700 – 57000

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