NIFTY extended its winning streak to a fourth consecutive session, as buyers managed to hold their ground amidst bouts of intense selling pressure. Starting the session on a muted note, the index came under some early pressure, largely driven by profit booking in BANKNIFTY. However, buyers displayed resilience, preventing any meaningful downside. During the second half of the session, an attempt to extend the rally proved short-lived, as sellers once again defended higher levels, restricting any significant upside expansion. Nevertheless, the index managed to end the day near its session highs, albeit on a subdued note, closing at 24317 with gains of 0.28%.

Given the subdued market activity during the session, no meaningful change was observed in the overall technical structure of NIFTY. The battle for control at elevated levels continued, with buyers and sellers locked in a tussle around key resistance zones, as reflected in the volatile intraday price action. That said, the ability of buyers to hold their ground despite bouts of intense intraday selling provides them with a slight near-term edge. However, a convincing breakout above the immediate resistance band of 24350–24450 is essential to signal a short-term trend reversal. Until then, the broader market structure continues to remain range bound. A subsequent breakout above the 24600 mark would further confirm a decisive shift in control towards buyers and strengthen the case for a resumption of the primary uptrend. Unless these resistance levels are convincingly surpassed, it would be prudent to avoid initiating fresh long positions on the index, particularly with prices trading close to key overhead hurdles. On the downside, immediate support is now expected in the 24250–24200 zone, followed by a stronger support cluster in the 23970–23900 band.

Participants should monitor the breakout levels on the index, and look to participate in the index in case of a breakout or else as advocated earlier adopting a stock specific approach, where strong stocks, can be bought on a retracement to key supports or their short-term moving averages.

Key levels to watch

NIFTY

Support: 24250- 24200

Resistance: 24350- 24400

BANKNIFTY

Support: 56650 – 56500

Resistance: 57400 – 57550

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