Starting the session on a slightly tentative note, NIFTY witnessed a lacklustre trading session. Following a gap-down opening, the index gradually drifted lower after the RBI maintained the status quo on the policy front, prompting some profit booking during the day. However, a sharp recovery towards the fag end of the session enabled the index to recoup a significant portion of its intraday losses. As a result, NIFTY ended the session at 24625, posting marginal gains of 0.04%.

Prices continue to hover within a narrow range, as reflected by the formation of an Inside Bar candlestick on the daily chart. Notably, this consolidation is taking place above the previous swing high at the 24600 mark, indicating that buyers continue to defend higher levels and retain near-term control. While the prevailing sentiment and the broader market outlook remain constructive, the higher timeframe chart structure continues to advocate caution and a wait-and-watch approach. As highlighted in our earlier commentaries, we continue to believe that a decisive daily close above the 24800–24850 band would provide conclusive evidence that the market has successfully shrugged off its three-month-long sideways trading range and resumed its primary uptrend. Until such confirmation emerges, remaining on the sidelines, particularly with the index trading close to key resistance levels; appears to be the more prudent strategy. Chasing momentum at current levels may not offer a favorable risk-reward proposition, and participants would be better served waiting for either a confirmed breakout or a retracement towards stronger support zones. From a level’s perspective, immediate support is likely to emerge in the 24450–24350 band. On the upside, the high registered during yesterday’s CAS session around 24750 makes the 24750–24800 zone the immediate resistance area, with a decisive move above 24820 required to confirm a sustained breakout.

The MIDCAP index once again encountered selling pressure from higher levels, reinforcing the presence of strong overhead supply near its recent highs. That said, while the immediate technical setup has not yet turned bearish, the current risk-reward does not favor an aggressive approach. A wait-and-watch strategy remains more prudent at this juncture. Participants should continue to focus on fundamentally and technically strong stocks, preferably accumulating them on retracements towards key support zones or their short-term moving averages, rather than chasing momentum at higher levels.

Key levels to watch

NIFTY

Support: 24450- 24350

Resistance: 24750-24800

BANKNIFTY

Support: 57400 – 57300

Resistance: 58250 – 58500

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