“Indian equity markets are expected to open on a mildly positive note, with Gift Nifty trading at 24,015, up by 21 points. Asian markets are witnessing mixed trade after a subdued overnight session on Wall Street, where the Nasdaq Composite and S&P 500 ended lower amid weakness in technology stocks, while the Dow Jones Industrial Average continued its record-setting run and and SpaceX rallied to become the fifth-most valuable U.S. company. Despite the cautious global setup, easing geopolitical concerns in West Asia and a sharp decline in crude oil prices continue to provide support to risk sentiment and may help domestic equities maintain their positive bias.

In the previous session, the Nifty 50 gained 0.6 percent and extended its rally for the third consecutive session. The index continued to trade above its key short- and medium-term moving averages, reflecting sustained buying interest. The recent rally has been supported by easing crude oil prices and improving market sentiment. The broader structure remains constructive, though the index is now approaching an important resistance zone that could determine the next directional move.

From a technical standpoint, momentum indicators remain firmly in favour of the bulls. The RSI climbed further to 59.02 and continued its upward trajectory, indicating strengthening momentum. The MACD maintained its positive crossover with rising green histogram bars, reflecting continued bullish strength. The 10-day EMA has also moved above the 20-day EMA, reinforcing the positive undertone. Immediate resistance is placed around the 24,000 level, and a decisive breakout above this hurdle could trigger a move towards 24,100 and subsequently 24,500, which corresponds to the swing highs seen in May. On the downside, 23,800 is expected to act as immediate support, followed by a stronger support zone near 23,650.

Derivatives data indicates a positive undertone. The Nifty Put-Call Ratio (PCR) rose to 1.08 from 0.99 in the previous session, suggesting higher put writing activity and improving bullish sentiment among option traders. India VIX declined sharply by 6.9 percent to 13.36, extending its downward trend for the fourth consecutive session. The sustained decline in volatility indicates increasing comfort for bulls and supports the ongoing upward momentum.

Option chain positioning highlights strong support around the 23,800 strike, where substantial put writing has emerged. On the upside, call writers remain active around the 24,000 strike, making it a crucial resistance level. A sustained move above this zone could lead to fresh short covering and accelerate bullish momentum towards higher targets.

In terms of price structure, Nifty formed a small-bodied bullish candle within the previous day’s range, indicating consolidation after a sharp upmove. The index continues to maintain a higher high-higher low formation and remains above its important moving averages, suggesting that the broader trend remains positive. The current consolidation near resistance appears healthy and may serve as a base for the next leg of the uptrend if support levels continue to hold.
Bank Nifty also maintained its positive bias and closed moderately higher while forming a Doji-like candlestick pattern on the daily charts, indicating temporary indecision after a strong rally. The banking index continues to trade comfortably above all major moving averages, while the 20-day EMA is close to crossing above the 50-day EMA, a development that would further strengthen the bullish structure. The RSI advanced to 67.72, while the MACD maintained a bullish crossover with expanding green histogram bars. The overall trend remains positive, although some consolidation at higher levels cannot be ruled out.

Overall, the technical setup remains constructive with improving momentum indicators, supportive derivatives data, and declining volatility. While some consolidation near the 24,000 resistance level is possible, the broader trend continues to favour the bulls. The immediate range for Nifty is expected between 23,800 and 24,100. A decisive breakout above 24,000–24,100 could pave the way for a move towards 24,500 in the coming sessions,” says Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited.