Starting the session with a notable gap-up opening, as positive global cues helped set a constructive tone. Following some hesitation during the early hours of trade, buyers attempted to extend the gains, but their efforts failed to yield much, as sellers refused to cede control. Consequently, prices eventually wrapped up the session close to the day’s opening level, resulting in an ambiguous close at 24231, with gains of 0.64%.

While the recent selling spree appears to have taken a pause for now, it is still too early to conclude that the bulls are out of the woods. The presence of a strong overhead hurdle, particularly in the 24300–24400 band, is likely to act as a stiff barrier on the path higher. The tentativeness exhibited by buyers following the gap-up opening, coupled with the formation of a Doji candle on the daily charts, points towards prevailing hesitation and a lack of clear directional conviction. A higher low following a successful retest of the recent lows in the 24200–24100 band is likely to provide stronger confirmation of a potential trend reversal. That said, the near-term outlook remains cautiously buoyant as long as the crucial 24050–24000 support zone continues to hold. Hence, any dips should be utilized to consider venturing into longs, till the time above mentioned support holds. From a level’s perspective, 24150 is an immediate crucial support, followed by a stronger cushion at 24040–24000. On the upside, immediate resistance is likely to emerge in the 24250–24350 band, followed by a stronger hurdle at the 24400–24450 zone.

Markets continue to exhibit a tentative and cautious stance, with no clear indication of the immediate direction. Following the strong up move witnessed across the broader market as well as the frontline indices, some stocks are now showing signs of profit booking. Against this backdrop, participants should continue to adopt a cautious approach and remain highly selective in their stock-specific approach, focusing on stocks that continue to demonstrate relative strength.

Key levels to watch

NIFTY

Support: 24050- 24000

Resistance: 24250- 24350

BANKNIFTY

Support: 57200– 57000

Resistance: 57600 – 57700

Hitesh Rathi, Technical Analyst -Equity & Derivatives, Angel One.