Tracking the developments following the mid-week holiday, GIFT Nifty signalled a positive opening for the domestic markets. In line with the indication, the benchmark index began the session on a firm note, extending its buying momentum during the initial trades. However, the bears seized the opportunity to stage a strong comeback, erasing the opening gains and eventually pushing the index into negative territory. Despite the initial optimism, the Nifty50 failed to sustain its upward momentum and concluded the session on a subdued note, settling around the 22800 zone, down 0.34% for the day.

The technical structure reflects a cautious undertone, with the Nifty50 hovering around its 20-DEMA and extending its corrective trajectory for the second consecutive session in the week. However, the broader higher-low formation remains intact, as the index managed to defend the crucial 22720 zone on a closing basis despite the broad-based selling pressure. From a technical perspective, a decisive breach below 22720 could accelerate the downside towards the 22650-22600 zone in the near term. Further weakness could expose the sacrosanct support band of 22500-22450, which remains pivotal for preserving the broader intermittent bullish structure. On the upside, the 22900-23000 zone is expected to act as an immediate resistance area. While a sustained move above 23150 would be essential to revive buying interest, improve market sentiment, and signal a potential bullish reversal in the prevailing price structure.

Going forward, we maintain a cautious stance and prefer a stock-centric approach until a clearer directional trend emerges. Amid heightened volatility and frequent whipsaw movements across the broader market, disciplined risk management remains paramount. Traders are advised to exercise prudence, avoid aggressive positioning, and prioritize capital preservation while awaiting stronger directional confirmation.

Key levels to watch

NIFTY

Support: 22720 – 22650

Resistance: 23000- 23150

BANKNIFTY

Support: 54800 – 54500

Resistance: 55300 – 55500Osho Krishan, Chief Manager – Technical & Derivative Research, Angel One.