Sensex Today Live: ‘Technical setup remains positive with a bullish undertone’

“Indian equity markets are expected to open on a positive note, with Gift Nifty trading at 24,205, up by 120 points. However, broader Asian markets are witnessing weakness in early trade, with sharp declines seen across major indices including the Nikkei 225 and KOSPI following overnight weakness in US technology stocks. Despite the cautious global backdrop, domestic markets are likely to draw support from improving technical structures and easing volatility conditions.

In the previous session, the Nifty 50 rebounded strongly after two days of correction and gained around 0.6 percent, reclaiming the psychological 24,000 mark. The benchmark index continued to hold above its short- and medium-term moving averages, indicating that the broader trend remains constructive. Falling crude oil prices and stable volatility conditions also supported market sentiment. The gradual rise in support levels over recent sessions suggests that buying interest is emerging on declines, keeping the near-term outlook positive.

The immediate hurdle for Nifty is placed in the 24,200–24,300 zone, which has emerged as a crucial resistance area over the past few sessions. A sustained breakout above this zone could trigger fresh buying momentum and open the path toward 24,500. On the downside, the 23,900–23,850 zone is expected to provide immediate support, and maintaining above this range will be important for preserving the current bullish structure.

Derivatives data indicates a constructive undertone. The Nifty Put-Call Ratio (PCR) rose to 1.13 from 1.02, suggesting increased put writing activity and strengthening bullish sentiment among market participants. The elevated PCR reflects growing confidence that key support levels are likely to hold in the near term.

The volatility indicator, India VIX, declined by 2.63 percent to 13.24, remaining below all major moving averages and signalling reduced uncertainty in the market. Lower volatility continues to support bullish sentiment, although a further decline in the VIX would provide additional comfort to market participants and strengthen the possibility of a sustained upmove.

Option chain positioning continues to indicate strong support around the 24,000 strike, where significant put writing activity is visible. On the upside, call writers remain active in the 24,200–24,300 zone, making it the immediate resistance band. A decisive breakout above this zone may trigger short covering and accelerate upward momentum.

Bank Nifty outperformed the broader market and advanced 0.85 percent, closing above the 58,000 mark. The index formed a bullish candle after the previous session’s weakness and continued to trade comfortably above all key moving averages. The RSI improved to 63.22, while the MACD remained firmly in positive territory despite continued moderation in histogram strength. The overall structure remains bullish, although momentum indicators suggest some consolidation before the next major directional move. Immediate support is placed around 57,500–57,600, while resistance is seen near 58,500–58,700.

Overall, the technical setup remains positive with a bullish undertone. The broader trend continues to favour the upside as long as the Nifty sustains above the 24,000 mark. While momentum indicators suggest ongoing consolidation, a decisive move above the 24,200–24,300 resistance zone could act as the catalyst for the next leg of the rally. The immediate trading range for Nifty is expected between 23,850 and 24,300, with a breakout beyond this range likely to determine the market’s next directional move,” says Aakash Shah, Technical Research Analyst at Choice Broking.