Gift Nifty signaled a weak start to the week as heightened geopolitical tensions, subdued global market sentiment, and mixed earnings from private banks over the weekend weighed on investor confidence. These factors have triggered a gap-down opening for the benchmark index. However, after the initial decline, buying interest emerged, leading to a volatile recovery that helped trim early losses. Despite the rebound, the Nifty 50 ended the session lower by around 0.4%, closing near the 24240 level.

Technically, the 100-day DEMA acted as a strong support, enabling the bulls to stage a modest recovery and preserve the prevailing bullish bias. Market breadth also remained encouraging, with the advance-decline ratio marginally favouring the advancing stocks, reflecting broader participation. The overall chart structure continues to be constructive, as the Nifty remains above its key EMAs, while every corrective dip continues to attract buying interest. On the levels front, 24150-24000 (cluster of 20, 50 and 100 DEMAs) is likely to cushion any shortcomings in near period. While on the flip side, 24350-24500 is likely to be seen as next potential resistance zone and a decisive breakthrough could only pave way for stronger momentum in the coming period.

We remain constructive on the market outlook and continue to advocate a ‘Buy on Dips’ strategy in the prevailing market environment. Investors should closely monitor geopolitical developments and the evolving macroeconomic landscape, as these are likely to influence near-term sentiment. At the same time, with the earnings season underway, a stock-specific approach focused on thematic opportunities is expected to outperform the broader market.

Key levels to watch

NIFTY

Support: 24150 – 24000

Resistance: 24350 – 24500

BANKNIFTY

Support: 57500 – 57250

Resistance: 58350 – 58700

Osho Krishan, Chief Manager – Technical & Derivative Research, Angel One.