NIFTY concluded a highly volatile week of trade, as both bulls and bears battled intensely for control. The week began on an encouraging note, with buyers maintaining the upper hand and pushing prices higher during the first two trading sessions. However, as the index approached the prior swing highs near the 24500 mark, selling pressure resurfaced, resulting in a sharp correction of nearly 700 points from the week’s high, with the bulk of the decline occurring on Wednesday. Thereafter, buyers staged a strong comeback, recouping nearly half of the losses suffered earlier in the week. As a result, the index managed to end the week on a mixed but resilient note, settling at the 24206 mark and registering gains of 1.02%.

Following the sharp mid-week decline triggered by renewed geopolitical tensions, the strong recovery witnessed over the last two trading sessions has once again lifted overall market sentiment, aided by the continued outperformance of the broader markets. The formation of long lower wicks on the weekly chart around the 23850–23800 zone clearly highlights the emergence of strong buying interest at lower levels and reinforces the importance of this support cluster. Despite the encouraging recovery, the technical structure of the frontline index remains somewhat uncertain. A series of overhead resistance levels continue to cap the upside, beginning with the bearish gap zone in the 24280–24360 band, which is likely to act as the first major hurdle. The Point & Figure charts also reinforce this cautious view. On the daily 0.25% × 3 Point & Figure chart, although the index has established a strong base around its 10-column moving average near the 23850 mark, the formation of a Bearish 100% Pole suggests the presence of significant overhead supply. This is further reinforced by the confluence of multiple objective 45-degree trendlines in the same region. A similar technical setup is visible on the shorter-term 0.1% × 3 Point & Figure chart, further highlighting the presence of strong resistance at higher levels. In addition, the XO Zone Indicator continues to remain in bearish territory, indicating that the bulls are not yet completely out of the woods. Going forward, while the broader technical outlook continues to carry a positive undertone, a measured approach remains advisable. Rather than chasing rallies at higher levels, participants should consider adopting a buy-on-dips strategy near key support zones, while awaiting a decisive breakout above the immediate resistance cluster before turning aggressively bullish. In terms of levels, the 24000-23930 zone is an immediate support cluster, followed by a stronger support at 23850-23800. On the flip side, immediate resistance is placed in the 24280-24320 zone, followed by a stronger resistance at 24480-24540.

The ratio chart of the NIFTY 500 against the NIFTY 50 has once again turned in favour of the broader market, suggesting that the NIFTY 500 is likely to continue outperforming the benchmark index. In light of this improving relative strength, participants should continue to adopt a stock-specific approach, with opportunities expected to remain more favourable in the broader market.

Key levels to watch

NIFTY

Support: 24000 – 23930

Resistance: 24280- 24320

BANKNIFTY

Support: 57400 – 57100

Resistance: 58400 – 58700

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