On the weekly expiry day, Nifty started on a positive note and subsequently traded in a range for the remainder of the session. The index eventually ended with gains of around half a percent, closing tad below the 23250 level.

Technically, not much has changed, and the daily chart continues to show a series of small-bodied candles, with today’s formation remaining well within the previous day’s range, indicating ongoing consolidation. As highlighted in the earlier outlook, Nifty is placed near the golden retracement zone of the April rally, where some respite was visible in today’s price action. However, the broader structure still warrants caution. The recent trendline breakdown, formation of lower tops and lower bottoms, and sustained trading below key moving averages continue to suggest a weak undertone. That said, there is a clear divergence emerging in the broader market structure, with Bank Nifty outperforming since last week, also gaining over 2% today and forming a higher bottom structure along with a symmetrical triangle pattern breakout on the daily chart. If this performance continues in Banking space, it could support a short-term bounce in Nifty as well, especially given Bank Nifty’s higher weightage in the index. Ration analysis between Nifty and Bank Nifty indicates that leadership is currently shifting towards Bank Nifty, and positioning should be aligned accordingly. For Nifty, the golden retracement zone around 23100–23000 zone remains an immediate support area, while on the upside, 23500–23600, coinciding with the 20 DEMA, acts as a key resistance band. Traders are advised to monitor these levels closely and structure positions accordingly.

Key levels to watch

NIFTY

Support: 23100 – 23000

Resistance: 23500 – 23600

BANKNIFTY

Support: 55000 – 54700

Resistance: 55800 – 56000

Rajesh Bhosale, Technical Analyst, Angel One