The Indian equity markets witnessed a volatile trading week, marked by sharp whipsaw movements on both sides during the truncated week. Market sentiment remained influenced by surge in the US dollar index, easing crude oil prices, and instability from Asian peers, which collectively contributed to heightened volatility. Nevertheless, amid the volatility and sharp swings witnessed throughout, the Nifty50 index ultimately ended on a largely flat note, registering a marginal gain of just 0.18% on weekly basis to settle slightly above the 24050 level.

From a technical standpoint, the Nifty50 index witnessed encouraging developments during the week as it repeatedly tested the crucial 100-DEMA. However, a decisive close above this key resistance level is still awaited to confirm a sustained breakout. Meanwhile, the narrowing gap between the 20 & 50 DEMA reflects an improving market structure and suggests that declines continue to attract buying interest.

For now, the index remains in a consolidation phase, with the 100-DEMA positioned around the 24140-24170 zone acting as an immediate hurdle. A convincing move above this resistance zone could trigger the next leg of the uptrend, opening the path towards the 24500-24600 region in the coming week. On the downside, the 20-DEMA has already demonstrated its significance by providing strong support during recent corrective phases. Consequently, the 23800 zone is expected to serve as a critical support level, followed by the bullish gap area till 23645. Overall, the broader undertone remains positively biased, with market dips likely to be viewed as buying opportunities.

Looking ahead, any significant developments in global markets during the extended weekend could act as a key catalyst in shaping the intermediate trend for domestic equities in the coming week. Therefore, traders are advised to closely monitor global cues and macro developments. Meanwhile, thematic sectors continue to drive market action and are likely to remain the preferred avenue for domestic participants seeking relative outperformance.

Key levels to watch

NIFTY

Support: 23900 – 23780

Resistance: 24170 – 24300

BANKNIFTY

Support: 57700 – 57200

Resistance: 58500 – 59000

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