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Below the Quote on Pre-market comment for Monday August 31 by Sachin Gupta, VP-Technical Research at Choice Broking

Indian equity markets are expected to open on a weak note, with Gift Nifty trading at 24,244, down by 105 points. Asian markets have started the month under pressure amid renewed geopolitical concerns and hawkish signals from the US Federal Reserve. From a technical perspective, the weak opening is likely to keep the Nifty under pressure, with the index remaining below its key moving averages.

The Nifty 50 rebounded 0.35 percent on August 28 after a two-session correction, but the recovery remained largely range-bound. The index continues to trade below its key moving averages and below the 50 percent Fibonacci retracement level of the rally from 23,606 to 24,774. The broader technical structure therefore remains cautious. The 24,000 level is the immediate and crucial support, followed by 23,800. On the upside, 24,300–24,400 is likely to act as the immediate resistance zone. A sustained move above 24,400 would be required to improve the technical setup and open the possibility of a move towards 24,800.

On the daily chart, the Nifty formed a bullish candle within the previous day's long red candle, indicating consolidation rather than a confirmed reversal. The index remains below its key moving averages, while the short-term moving averages continue to trend lower. The RSI at 46.98 remains below the 50 mark and is moving sideways, reflecting weak momentum. The MACD remains below the zero line with a negative crossover, although the red histogram bar has moderated slightly. Overall, the technical indicators continue to point towards weak momentum and range-bound trade.

The Bank Nifty also formed a small-bodied bullish candle with shadows on both sides, reflecting indecision between bulls and bears. The index took support around its 50-day EMA and continues to hold above its medium- and long-term moving averages, although it remains below its short-term moving averages. The RSI is around 50, indicating a neutral momentum setup, while the MACD remains below the reference line, with the red histogram bar expanding. Hence, the banking index is also likely to remain range-bound with a cautious bias. Immediate support is placed around 57,200–57,000, while resistance is seen near 58,000–58,200.

The India VIX declined 3.5 percent to 10.68, remaining below its short-term moving averages for around a month. The subdued volatility environment continues to provide some comfort to the bulls and indicates that the market is not pricing in extreme near-term volatility.

The Nifty Put-Call Ratio (PCR) increased to 0.89 on August 28 from 0.77 in the previous session. The move above 0.7 indicates some improvement in the derivatives-based sentiment, although the ratio remains below 1, suggesting that the bullish undertone is not yet strong enough to confirm a decisive trend reversal.

From the price structure, Nifty remains locked in a broader consolidation phase, with 24,000–24,400 emerging as the immediate trading range. A decisive breakdown below 24,000, particularly below 23,800, could strengthen bearish momentum and expose the index to lower levels. Conversely, a sustained breakout above 24,400 would be required to shift the short-term structure towards a stronger recovery.

Overall, the technical setup indicates a weak opening followed by range-bound and volatile trade with a cautious-to-negative bias. The broader structure remains under pressure as long as Nifty trades below 24,400, while 24,000 and 23,800 remain the key downside levels to watch. A decisive breakout on either side of the 24,000–24,400 range is likely to determine the next directional move.

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