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Below the Quote on Pre-market comment for Monday July 20 by Sachin Gupta, VP – Technical Research, Choice Equity Broking

Indian equity markets are expected to witness a cautious start on Monday, with GIFT Nifty trading around 24,295, down nearly 55 points, indicating a weak opening for domestic equities. Global cues remain negative after a sharp sell-off on Wall Street, while a strong surge in crude oil prices amid escalating geopolitical tensions in the Middle East is likely to keep investors on edge during the opening session. Despite the weak global backdrop, the domestic market continues to exhibit a resilient technical structure, suggesting that any decline may attract buying at lower levels.

On Friday, the Nifty 50 closed at 24,334.30, gaining 261 points (1.09%), and formed a strong bullish candle on the daily chart, reflecting renewed buying interest after a brief phase of consolidation. The index witnessed broad-based participation across sectors and managed to reclaim important resistance levels, reinforcing the positive short-term trend. Going ahead, the immediate trading range for Nifty is expected between 24,100 and 24,500, while Bank Nifty is likely to trade within the 58,000–59,000 zone, with the overall bias remaining Sideways to Bullish.

Technically, the derivatives setup continues to support the bullish undertone. Put writers remained aggressive at the 24,100 strike, followed by 24,200 PE, indicating a strong support base. On the higher side, maximum Call Open Interest is concentrated at 24,500 CE and 24,600 CE, suggesting these levels could act as immediate resistance. The Put-Call Ratio (PCR) stands at 1.13, reflecting positive market sentiment, while India VIX rose 2.08% to 13.15, indicating a marginal increase in volatility but still remaining at comfortable levels.

Bank Nifty ended Friday's session at 58,521, gaining 939 points (1.63%), and formed a strong bullish candle on the daily chart, reflecting robust buying interest across the banking space. The index is trading comfortably above all key moving averages (20, 50, 100 & 200 EMA), confirming a well-established bullish trend and a strong underlying market structure. The decisive breakout above its recent consolidation range signals a continuation of the ongoing uptrend, with the index consistently forming higher highs and higher lows. Additionally, the RSI at 60.15, remaining above its signal line of 58.34, indicates healthy bullish momentum while still leaving room for further upside without entering overbought territory.

Friday's rally was led by Nifty Private Bank, followed by Nifty IT, Nifty Bank, Nifty Financial Services, Nifty Realty, and Nifty Auto, highlighting strong buying interest across banking, technology, financial, and automobile stocks. On the other hand, Nifty Pharma emerged as the biggest laggard, followed by Nifty Healthcare, Nifty MidSmall Healthcare, Nifty Metal, Nifty Consumer Durables, and Nifty Cement, reflecting selective profit booking in defensive and commodity-linked sectors.

Overall, while weak global cues and rising crude oil prices may trigger a cautious opening, the domestic market's strong technical setup and supportive derivatives positioning continue to favour a buy-on-dips strategy. Traders should closely monitor the 24,100 support and 24,500 resistance on Nifty for the next directional move, while stock-specific action is likely to remain the preferred trading approach.

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