On its weekly expiry day, NIFTY witnessed a muted trading session, with prices oscillating within the previous day’s range. The index started with a gap up, albeit within the prior session’s range, and buyers managed to hold their ground throughout the day. Prices gradually edged higher as the session progressed, although the pace remained measured. The index eventually wrapped up the session just shy of the psychological 24000 mark at 23989, registering gains of 0.57%.

Technically, no significant changes were observed today, as prices remained confined within the previous session’s range and formed an Inside Bar candlestick pattern. However, the ability and willingness of buyers to hold on to relatively elevated levels, particularly near the crucial resistance zone of 24000–24150, tilts the balance slightly in favor of the bulls. That said, a decisive breakout above the mentioned resistance zone would be required to establish complete control in favor of buyers. Until then, the broader structure remains range-bound, although the near-term bias continues to remain positive. Banking stocks have been the key contributors in helping NIFTY initially defend its crucial support zones and subsequently fuel the sharp recovery witnessed over the past few sessions. A renewed turnaround in the immediate trend of the banking index, which has remained relatively subdued in recent sessions, could act as a fresh trigger for further upside in the frontline indices. In terms of levels, the 23800–23780 zone, aligning with the 50 DEMA and the previous session’s lows, acts as the immediate support area. Below this, the bullish gap zone of 23650–23600 provides stronger support, which also coincides with the 20 DEMA.

Despite muted activity across the frontline indices, the broader market continues to witness healthy participation, with strong moves emerging in selective sectors and individual stocks. We continue to advocate a stock-specific approach, focusing on sectors displaying strong relative strength and constructive technical setups.

Key levels to watch

NIFTY

Support: 23750 – 23650

Resistance: 24090- 24150

BANKNIFTY

Support: 56750 – 56300

Resistance: 57800 – 58850

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