The Indian equity markets opened on a positive note, demonstrating resilience after the previous session’s sharp decline. The benchmark index traded within a narrow range for most of the day, sustaining higher levels until the penultimate hour, when profit booking and cautious sentiment triggered a mild pullback. Despite the late weakness, the Nifty50 managed to have a modest recovery and ended the session around 23970, posting a modest gain of 0.34%.

The partial rebound from the 20 DEMA showcased a resilience but inability to sustain the entire intraday gains portrays a hesitant undertone among the participants. From a technical perspective, the 23880-23800 zone is expected to serve as an important intermediate support, while a decisive breach below this range could weaken market sentiment and increase the likelihood of a decline toward 23650, potentially filling the recent bullish gap. On the upside, the 100-DEMA, positioned around 24100-24140, is likely to remain a formidable resistance zone. Only a sustained move above this hurdle would revive bullish momentum and improve the near-term outlook. Until such a breakout materializes, maintaining a cautious and selective trading approach appears advisable.

Going ahead, the commencement of the quarterly earnings is likely to heightened volatility and at same time likely to provide opportunities on stock-centric front. It is advisable to focus on opportunities benefiting from earnings driven momentum, while being abreast with the geopolitical developments which play a key catalyst in shaping the broader market trend and influencing investor sentiment in the near term.

Key levels to watch

NIFTY

Support: 23880 – 23800

Resistance: 24100 – 24140

BANKNIFTY

Support: 56700 – 56400

Resistance: 57600 – 57900

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