Sellers continued to dominate proceedings on the weekly expiry session, with prices largely oscillating within the previous session’s range. Following a muted start and some initial selling pressure, the index nearly retested the prior session’s lows. However, a recovery ensued thereafter, pushing prices towards the previous session’s highs. Buyers, however, failed to sustain the gains at elevated levels, resulting in the erosion of the entire intraday recovery. A late spike during the CAS session helped reduce losses prices, with the index eventually wrapping up the session at 24055, with losses of 0.10%.

Despite the intraday volatility, no noticeable change has been observed in the overall technical structure. Prices continue to hover near key immediate support levels, reflecting an intense tussle between buyers and sellers for control. That said, with prices now trading conclusively below key EMAs and the upward-sloping trendline that had provided support since March this year, the immediate trend has turned bearish. A similar setup is emerging on the Point & Figure chart of the index, where prices have now closed below the 10-column SMA, pointing towards a deterioration in the short-term trend. In addition, a Bearish Triple Bottom Sell on the 0.1% × 3 Point & Figure chart provides further confirmation of the developing bearish structure. Despite these bearish connotations, the repeated defence of the psychological 24000 mark provides some hope to the bulls. However, only a decisive daily close below 24000 is likely to trigger a further acceleration in the ongoing bearish move. In terms of levels, 24000 remains an important immediate support, followed by a stronger support zone in the 23800–23700 band. On the upside, the 24150–24200 range is likely to emerge as an immediate resistance zone, followed by a stronger hurdle in the 24300–24360 band.

Markets continue to trade on a knife’s edge, and the fight to defend 24000 at all costs, adds further importance to this psychological mark. As highlighted earlier, the breadth has significantly improved, thanks to the correction in August, but participants should wait for a confirmed trend reversal of the ongoing down move, before venturing into any aggressive trades.

Key levels to watch

NIFTY

Support: 24000- 23800

Resistance: 24150- 24200

BANKNIFTY

Support: 57200– 57150

Resistance: 57500 – 57750

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