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Nifty

Nifty extended its relief rally, supported by banking majors, closing above its 5 DEMA. However, the ongoing consolidation phase continues, with the 20-day EMA at 23,320 acting as a critical resistance. A decisive close above this level could trigger fresh buying, while failure to reclaim it may push the index back below 23,000. Weak trend indicators suggest rallies will likely face resistance near 23,300, reinforced by heavy call writing at 23,300 and 23,500. On the downside, key support lies between 23,000-22,800, with additional cushioning at 22,500. Sectoral divergence persists, as defensive stocks show resilience while cyclicals remain under pressure. Given the earnings season and macroeconomic shifts, traders should maintain a balanced approach, focusing on stocks near support levels and avoiding those signaling breakdowns. Adapting to price action at key levels will be essential in navigating ongoing volatility.

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