It was a muted trading session for NIFTY, with the index exhibiting virtually no directional movement after opening marginally higher. Prices remained confined to an exceptionally narrow intraday range of just 73 points; the narrowest range witnessed in the past six trading sessions: resulting in the formation of an NR7 candlestick on the daily chart. Amidst the lackluster price action, the index eventually settled at 24636, ending the session with marginal gains of 0.05%.

Lackluster and directionless trading extended into the fourth consecutive session for NIFTY, with today’s inactivity being even more pronounced as prices displayed virtually no meaningful movement throughout the day. Given the subdued price action, the overall technical structure remains unchanged, and consequently, so does our broader outlook. We continue to maintain that the larger technical structure remains constructive. However, a confirmed shift in control towards buyers is likely to materialize only on a decisive daily close above the 24800–24850 band. Until such confirmation emerges, adopting a strategy of accumulating the index on retracements towards strong support levels, rather than chasing momentum at higher levels, is likely to offer a more favorable risk-reward proposition. From a level’s perspective, immediate support is expected to emerge in the 24450–24350 band. On the upside, the high registered during first CAS session around 24750 makes the 24750–24800 zone the immediate resistance area, while a decisive move above 24820 would provide confirmation of a sustained breakout and strengthen the ongoing bullish setup.

Given the strong rally witnessed in the broader markets over the past couple of weeks, coupled with the hesitation displayed by the MIDCAP index near its previous all-time highs, adopting a wait-and-watch approach appears to be the more prudent strategy at this juncture. Until greater clarity emerges regarding the market’s immediate direction, participants should avoid adopting an overly aggressive approach

Key levels to watch

NIFTY

Support: 24550- 24480

Resistance: 24750-24800

BANKNIFTY

Support: 57700 – 57440

Resistance: 58250 – 58500

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