The benchmark index witnessed a tepid weekly expiry session, particularly after the sharp decline recorded during the first hour of trade. The bulls remained largely on the sidelines, with no meaningful attempt at a retracement throughout the session. Consequently, the Nifty50 concluded the expiry on a weak note, settling below the crucial 24500 zone. The index declined 0.47% during the day, reflecting continued caution and a lack of buying conviction among market participants.

The decline following the Doji formation on the daily chart signals a concerning technical development, while the negative crossover on the RSI further reinforces the possibility of continued downside in the near term. From a technical perspective, the 20-DEMA, currently placed around 24350, is likely to act as the immediate cushioning zone for the index. A decisive breach of this level could intensify selling pressure, with stronger support emerging in the 24200-24160 zone, where the 50 and 100-DEMA converge. On the upside, 24600 remains a crucial resistance area, aligning with recent closing levels and likely to restrict recovery attempts. A sustained move above this resistance, accompanied by improving momentum, would be essential to revive buying interest and restore positive traction in the index over the coming sessions.

Going ahead, in light of the recent developments, a cautious approach remains warranted. Investors should refrain from aggressively adding long positions on dips until a meaningful directional move emerges. In the interim, a stock-specific approach would be prudent, particularly while the benchmark index continues to exhibit weakness and remains vulnerable in the near term.

Key levels to watch

NIFTY

Support: 24350 – 24300

Resistance: 24600 -24750

BANKNIFTY

Support: 57100 – 56800

Resistance: 57800 – 58000

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