Quote on Closing Market Summary by Deepesh Sarawagi Technical Research Analyst at Choice Broking
Below the Quote on Closing Market Summary by Deepesh Sarawagi Technical Research Analyst at Choice Broking
"Indian equity markets extended their gains, with Nifty opening nearly 293 points higher at 25,337.80 and touching an intraday high of 25,424.35. However, the index witnessed profit booking after forming a doji candle during the first hour, slipping to a low of 25,095.35 before closing at 25,255.05, up 210.40 points (+0.84%). Despite the positive close, the intraday rejection indicates some profit booking after the recent rally. Daily RSI stands at 79.49, reflecting overbought conditions. Immediate support is placed at 25,050–25,150, while resistance is seen at 25,400–25,450.
Sector-wise, Auto, PSU Bank, Chemicals, Banking, Financial Services and FMCG remained among the strongest pockets, indicating broad-based buying interest across several sectors. Metal, Oil & Gas and Cement also traded positively. On the weaker side, IT, Pharma, Realty and Healthcare witnessed selling pressure. Overall, sectoral participation remained largely positive, although selective profit booking was visible in a few sectors.
From a technical perspective, Nifty continues to maintain a positive broader structure, but the elevated RSI of 79.49 suggests limited room for an uninterrupted rally in the near term. The rejection from higher levels indicates the possibility of consolidation or intermittent profit booking. A sustained move above 25,400–25,450 could extend the upward momentum, while 25,050–25,150 remains an important support zone. India VIX edged higher to 17.55, indicating a slight increase in market volatility.
From the derivatives perspective, Put writing around 25,200, followed by 25,000, indicates support at lower levels. On the upside, active Call writing around 25,200, 25,400 and 25,500 suggests resistance and supply at higher levels. The concentration of Put and Call writing around 25,200 indicates an important zone for near-term positioning. A sustained move above 25,400 could trigger further short covering, while failure to hold 25,200 may increase profit-booking pressure.
Bank Nifty witnessed strong buying interest, opening with a sharp gap-up of nearly 783 points at 60,524.70 and extending its rally towards 61,394.30. However, the index faced rejection near the 61,400 zone, a previous resistance area from the February series, and pared some gains before closing at 60,792.40, up 1,051.15 points (+1.76%). The daily candle formed a long upper shadow, indicating profit booking at higher levels despite the strong positive close. Immediate support is placed at 60,400–60,500, while resistance is seen at 61,000–61,200.
Overall, the broader market outlook remains sideways to bullish, supported by positive sectoral participation and continued strength in banking and Auto stocks. However, elevated RSI levels, higher volatility and visible profit booking at higher levels suggest that some consolidation cannot be ruled out. Nifty needs to sustain above 25,200 and decisively cross 25,400–25,450 to extend its rally, while Bank Nifty needs to reclaim 61,000–61,200 for further upside. Traders should maintain a cautious buy-on-dips approach near key support zones rather than chasing prices at elevated levels."
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