It was a mixed week of trade for NIFTY, as prices remained confined to a narrow trading range, with visibly no activity. Starting the week on a robust note, where gains were further amplified by a CAS led spike. However, the remainder of the week was sent in a lackluster fashion, where buyers defended relatively lower levels. A modest gap down open on final day, weighed slightly on the sentiments, resulting in a weekly wrap at the 24570 mark, with minor gains of 0.77%.

Given the absence of any meaningful price movement throughout the week, the overall technical structure remains largely unchanged. That said, the formation of a Doji candle on the weekly charts, reflects a sense of indecision amongst participants at elevated levels. While the broader structure remains constructive. A decisive breakout above the 24800-24850 band, would not only confirm a resumption of the prior uptrend, but also breakout from the ongoing three-month trading range. Such a breakout would bring the higher time frames in alignment with the smaller time frames, paving the way for a sustained up move. Until then, adopting a strategy to buy any dips to strong support zones, instead of chasing momentum to the upside, remains a more viable strategy. From a levels perspective, immediate support continues to be placed in the 24450–24350 band, followed by a stronger cushion at the psychological level of 24000. On the upside, immediate resistance is placed in the 24650-24750 mark, followed by a stronger hurdle in the 24800-24850 band.

The broader continue to witness a bout of profit booking, clearly reflected in the hesitation exhibited by MIDCAP index near its all-time highs. As highlighted in our earlier commentaries, we continue to advocate a wait-and-watch approach until greater clarity emerges regarding the market’s immediate direction.

Key levels to watch

NIFTY

Support: 24450- 24350

Resistance: 24650-24800

BANKNIFTY

Support: 57450 – 57250

Resistance: 57900 – 58000

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