It was another lackluster trading session for NIFTY, as buyers once again failed to sustain the early gains. The index began the session on a slightly positive note, with buyers initially exhibiting resilience and pushing prices close to the week’s highs. However, the bullish momentum quickly fizzled out near the previous session highs, as a bout of profit booking around mid-day erased the early gains and dragged the index below its morning lows. A modest recovery in the latter half of the session helped recoup part of the losses, with NIFTY eventually settling at the 24072 mark, ending the day virtually unchanged.

Prices remain strangulated within the ongoing trading range, as the market continues to exhibit prolonged sideways activity. As highlighted in our previous commentary, any meaningful expansion in directional momentum is likely only after the index delivers a decisive breakout or breakdown from this well-defined range. For now, the range remains capped near the 24300 mark on the upside, an immediate resistance and 24000 on the downside, with a stronger and more critical support band placed in the 23850–23800 zone. Further reinforcing the prevailing range-bound structure is the visible contraction in the Bollinger Bands on the daily chart, indicating a decline in volatility. At the same time, the Bollinger Bands applied to the RSI have also narrowed considerably, suggesting that momentum has cooled, and neither buyers nor sellers have been able to establish convincing control. Given the current technical setup, participants should closely monitor the index for a decisive breakout or breakdown from the prevailing range and look to participate in the direction of the move once it materializes.

While the frontline indices continue to remain range-bound, any bouts of profit booking or corrective moves in the buzzing MIDCAP and SMALLCAP space should be viewed as opportunities to accumulate quality stocks. Entering fundamentally and technically strong stocks on meaningful price corrections offers a favorable risk-reward proposition. Until a clear directional trend emerges in the benchmark indices, adopting a stock-specific approach is likely to prove rewarding over the near to medium term.

Key levels to watch

NIFTY

Support: 24000 – 23850

Resistance: 24200- 24300

BANKNIFTY

Support: 57300 – 57200

Resistance: 58200 – 58500

Hitesh Rathi, Technical Analyst -Equity & Derivatives, Angel One.