The favorable global cues supported a positive opening in Indian equities, with the benchmark index beginning the expiry week on a buoyant note. However, the absence of follow-up buying weakened the initial momentum, dragging the index lower to retest the bullish gap. Subsequently, post the CAS session, the Nifty50 pared some losses and managed to close above 24200, ending the session with a marginal decline of 0.14%.

From a technical perspective, the setup remains tentative, with the 20-DEMA emerging as a formidable hurdle and consistently triggering rejections. However, the recent signs of bearish exhaustion have raised hopes of a potential reversal, although the momentum remains subdued. Market participants are likely to await a decisive trigger to revive buying interest and restore the underlying momentum. On the downside, the 24150-24100 zone is expected to provide immediate cushioning against any decline, while the 24050-24000 region remains a sacrosanct support area. On the upside, 24300, aligned with the 20-DEMA, is likely to act as an intermediate hurdle. A sustained breakout above this level would strengthen the technical setup and potentially pave the way for an extended recovery toward the 24500 mark in the coming sessions.

For now, a cautious approach remains prudent, with participants advised to refrain from taking aggressive positions until greater clarity emerges in the broader trend. Volatility is also expected to intensify amid the August monthly expiry. Therefore, traders should maintain disciplined risk management, adopt measured exposure, and remain vigilant for decisive market triggers.

Key levels to watch

NIFTY

Support: 24150- 24050

Resistance: 24300- 24500

BANKNIFTY

Support: 57200 – 57000

Resistance: 57900 – 58000

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