The new monthly expiry began on a buoyant note, as buyers once again defended immediate support levels. Starting the session with a gap up, bulls-maintained momentum, aided by strong support from BANKNIFTY, pushing NIFTY higher by over 150 points in the early part of the session. Thereafter, as prices approached the prior session highs, momentum gradually faded, leading to sideways price action for the remainder of the session. The index eventually closed just above the psychological 24000 mark, registering gains of 0.59%.

No significant changes were observed in the technical structure, as prices remained largely confined within the range of the previous trading session. Staying consistent with the outlook shared in the prior commentary, we do not anticipate a meaningful expansion in directional momentum unless we witness a convincing breakout above the 24100–24200 band on the upside or a breakdown below the 23850–23800 zone on the downside. The ongoing sideways price action is further highlighted by the formation of a Bullish Broadening pattern on the 1-minute 0.25% × 3 Point & Figure chart, reflecting the whipsaw nature of the current market activity. While this pattern generally precedes a trending move, the index has instead extended its consolidation phase by forming a Triangle pattern, further reinforcing the lack of clear direction at the current juncture. That said, the ability of buyers to hold prices around a prior swing high, which had earlier acted as a strong resistance zone and has now been defended for nearly 15 days, has slightly shifted the balance of power in favour of buyers. Participants should remain patient and wait for a decisive breakout beyond the mentioned levels, with participation ideally aligned in the direction of the eventual breakout.

In terms of levels, the 24100–24200 band remains an immediate hurdle, followed by a stronger resistance zone in the 24350–24450 band. On the downside, immediate support is placed in the 23850–23800 band, followed by a stronger support zone in the 23650–23500 area. While the indices continue to remain devoid of any meaningful directional momentum, participants should continue to adopt a stock-specific approach, with broader markets continuing to display strength and offer better trading opportunities.

Key levels to watch

NIFTY

Support: 23800 – 23750

Resistance: 24100- 24200

BANKNIFTY

Support: 57450 – 57250

Resistance: 58300 – 58700

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