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Below the Quote on Pre-market comment for Friday July 3 by Aakash Shah, Technical Analyst, Technical Research Analyst, at Choice Broking

Indian equity markets are expected to open on a firm positive note, with Gift Nifty trading at 24,430, up by 160 points. However, global cues remain mixed as Asia-Pacific markets traded cautiously amid continued weakness in U.S. technology stocks. Despite the mixed overseas sentiment, the domestic market setup remains constructive, supported by improving technical indicators, declining volatility, and sustained buying interest in broader markets.

The Nifty 50 extended its gains for the second consecutive session, rising 0.7 percent on July 2 and strengthening the short-term technical structure. The index successfully reclaimed the 100-day EMA and sustained above key short- and medium-term moving averages, indicating a revival in bullish momentum. The recent breakout from the consolidation phase, coupled with improving market breadth, suggests that bulls continue to maintain control. Going forward, the 24,200–24,300 zone remains an important resistance area. A decisive and sustained move above this hurdle may open the path towards 24,400–24,600. On the downside, 24,000 is likely to act as immediate support, and any breach below this level could trigger renewed consolidation.

From a technical standpoint, momentum indicators have turned increasingly supportive. The RSI has risen to 58.94 and registered a bullish crossover, indicating strengthening upward momentum. Meanwhile, the MACD remains above both the signal and zero lines, with the histogram turning positive after several sessions of contraction. The index also closed above the 23.6 percent Fibonacci retracement level of the April rally, reinforcing the improving trend structure. Overall, technical indicators suggest that bullish momentum is gaining traction.

Derivatives data reflects a strong bullish undertone. The Put-Call Ratio (PCR) climbed sharply to 1.28, indicating aggressive put writing and improving trader confidence. A PCR above 1 generally reflects a supportive market structure and strengthens the possibility of further upside if key resistance levels are crossed.

The India VIX declined another 7.21 percent to 12.29, its lowest closing level since February, indicating increasing comfort among market participants. Sustained low volatility levels continue to support bullish sentiment and reduce the probability of sharp corrective moves in the near term.

Option chain positioning suggests strong support around the 24,000 strike, where substantial put writing has emerged. On the higher side, resistance is visible near the 24,300–24,500 zone, where call writers remain active. A breakout above this zone may trigger short covering and accelerate the ongoing upmove.

Bank Nifty remained largely range-bound and closed flat in the previous session, forming a small-bodied candle that reflects temporary indecision. Despite the pause, the broader trend remains positive as the index continues to trade comfortably above all major moving averages. Momentum indicators remain supportive, though some moderation is visible. Immediate support is placed around 57,500–57,300, while resistance is seen near 58,500–59,000. A sustained breakout above the resistance zone may revive stronger momentum in the banking space.

Overall, the technical setup points towards a positive opening with a bullish bias. The broader market trend remains constructive, supported by improving momentum indicators, strong derivative positioning, and a sharp decline in volatility. The immediate trading range for Nifty is seen between 24,000 and 24,300, while a decisive breakout above 24,300 could trigger the next leg of the rally towards 24,500–24,600.

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