The Indian equity indices opened on a subdued note and witnessed a brief recovery during the initial hour of trade. However, weak participation at elevated levels on the expiry day, coupled with mounting geopolitical concerns, weighed on investor sentiment. The benchmark indices gradually surrendered early gains, with the Nifty50 slipping into negative territory during the second half of the session. Persistent selling pressure thereafter dragged the index lower, leading it to close near the 23900 zone, down 0.49 percent for the day.

The broader market demonstrated notable resilience despite heightened expiry-day volatility in the benchmark index, indicating underlying strength in market breadth. Technically, the Nifty continues to trade between its 20-day and 50-day EMA levels, while the positive crossover in the MACD histogram reflects sustained bullish momentum. This setup suggests that the broader undertone remains constructive, with the prevailing trend favoring a positive outlook in the near term. On the levels front, 23800-23700, the confluence of 20 DEMA and previous week closure represents a cushioning zone, followed by the sacrosanct support of 23600 zone. On the flip side, a sustained move above the 24000-24050 hurdle would reaffirm bullish momentum and potentially pave the way for an advance towards the 24300-24350 resistance zone in the near term.

Going ahead, any decline towards the aforementioned support zone is likely to attract buying interest, thereby favoring a ‘buy on dips’ strategy in the current market setup. Meanwhile, global developments are expected to remain key catalysts influencing market direction. Hence, investors are advised to maintain a disciplined approach with prudent risk management amid prevailing volatility.

Key levels to watch

NIFTY

Support: 23800 – 23700

Resistance: 24050 – 24300

BANKNIFTY

Support: 54700 – 54500

Resistance: 55800 – 56000

Osho Krishan, Chief Manager – Technical & Derivative Research, Angel One