After a promising weekly expiry session, benchmark index initiated the subsequent day on a subdued note, with prices opening nearly 100 points lower. The negative sentiment persisted through the first half of the session, as sellers gradually pushed prices lower. However, a sharp recovery in the second half, led largely by strength in the banking index, helped recoup all the intraday losses. As a result, the index eventually wrapped up the session almost unchanged at the 23405 mark.

Despite the intraday volatility, with prices swinging to and fro, the overall technical setup remains largely unchanged. Prices continue to remain confined within a broader trading range, while buyers have once again defended the sturdy support zone in the 23200–23100 band. The repeated defense of this support region by buyers, coupled with the formation of a Dragonfly Doji candlestick on the daily chart, tilts the scales slightly in favor of the bulls. The long lower shadow reflects the market’s rejection of lower levels and highlights the presence of strong buying interest. The price action reinforces the significance of the 23200–23100 support zone and improves the prospects of a near-term recovery, provided buyers continue to defend this crucial area. That said, the path higher is unlikely to be smooth, with a series of resistance levels likely to challenge any recovery attempt. The immediate resistance is placed in the 23550–23600 zone, followed by a stronger hurdle in the 23700–23900 band, which coincides with the 20 DEMA and 50 DEMA. Unless buyers manage to overcome these resistance levels decisively, the broader range-bound structure is likely to remain intact.

While prices continue to oscillate within a well-defined range, a strategy of buying near strong support levels and booking profits, or selling near resistance zones, as highlighted in our earlier commentary, may continue to be considered. At the same time, sectoral rotation remains clearly evident in the market. Therefore, identifying and focusing on stocks from sectors exhibiting relative strength on a given day is likely to yield more fruitful trading opportunities

Key levels to watch

NIFTY

Support: 23200 – 23100

Resistance: 23750 – 24000

BANKNIFTY

Support: 53050 – 52750

Resistance: 54600 – 55100

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