NIFTY had a disappointing expiry session, as buyers failed to build on the strong intraday recovery witnessed in the previous trading session. The index began the day with another notable gap-down, and although buyers attempted to stage a rebound, they were unable to replicate the prior session recovery. Sellers remained firmly in control, capping every intraday rally and eventually dragging the index back towards the day’s lows. NIFTY finally settled at the 24052 mark, registering losses of 0.66%.

Despite today’s sharp decline, no significant changes have emerged in the broader technical structure. Prices continue to remain confined within the ongoing trading range, which is clearly defined by the 24300 mark on the upside and the 23850–23800 support band on the downside. Unless the index delivers a decisive breakout above or below this well-defined range, we do not anticipate any meaningful expansion in directional momentum. That said, the repeated defense of the 20 DEMA by buyers highlights the presence of strong demand at lower levels, particularly in the 24000–23950 zone. However, a decisive break below this support cluster could pave the way for a retest of the more critical support band in the 23850–23800 region. In view of the prevailing range-bound structure, participants may consider adopting a buy-on-dips approach near key support levels, while using the upper end of the range to book profits or initiate tactical short positions, until a decisive breakout emerges. In terms of key resistance level, immediate resistance is placed in the 24150-24250 band, followed by a stronger resistance in the 24300-24350 zone.

Participants should continue to adopt a stock-specific approach at the current juncture, given the clear absence of any meaningful directional momentum in the frontline indices. Intermittent bouts of profit booking or short-term corrections may be utilized as opportunities to accumulate relatively stronger stocks and sectors, where the overall technical structure remains constructive, and the risk-reward profile is more favorable.

Key levels to watch

NIFTY

Support: 23850 – 23800

Resistance: 24150- 24250

BANKNIFTY

Support: 57100 – 57000

Resistance: 57650 – 57750

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