The Indian equity markets opened on a flat note, broadly in line with GIFT Nifty cues, but came under sustained selling pressure soon after the opening bell. The Nifty50 extended its decline through most of the session, slipping below its 20-DEMA and reflecting heightened caution among market participants, until a relief recovery emerged during the penultimate hour, helping the benchmark trim a substantial portion of its intraday losses. The recovery gained further momentum toward the close followed by the CAS, allowing the index to settle marginally above 23400, down just 0.15%.

The closing price may not fully capture the underlying market undertone or the dominance of bears witnessed throughout the session. From a technical perspective, the formation of a relatively longer lower wick on the daily candlestick suggests some exhaustion in bearish momentum, particularly around the crucial 20-DEMA support. Nevertheless, the broader setup warrants a cautious approach until stronger confirmation emerges.

On the levels front, 24350 (20-DEMA) is expected to act as an immediate cushioning zone, while the intraday swing low of 24265 remains a sacrosanct support in the near term. A decisive breach of this level could intensify selling pressure and potentially turn the short-term outlook bearish. Conversely, the 24550-24600 region continues to pose a formidable hurdle and only a decisive and sustained move above this resistance zone would help restore bullish momentum and reinforce the positive bias. Until such a breakout materialises, maintaining a cautious stance on the benchmark index remains prudent.

Going forward, investors are advised to refrain from taking aggressive positions on either side until greater clarity emerges in the broader market setup. A stock-specific approach should be preferred, with emphasis on thematic plays that continue to exhibit relative strength and offer selective opportunities.

Key levels to watch

NIFTY

Support: 24350 – 24265

Resistance: 24550 -24600

BANKNIFTY

Support: 57500 – 57200

Resistance: 58000 – 58250

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