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Below the Quote on Pre-market comment for Thursday July 23 by Sachin Gupta, VP - Technical Research, Choice Equity Broking 

Indian equity markets are expected to open on a cautious note amid mixed global cues, with investors likely to remain focused on domestic earnings and global developments for fresh direction. Although overseas sentiment remains mixed, persistent selling by institutional investors and a rise in market volatility may keep traders cautious during the opening session. The broader market is expected to remain range-bound, with stock-specific action likely to dominate. The overall bias for the day remains Sideways.

The Nifty 50 ended Wednesday's session at 23,996.25, declining 191.45 points (-0.79%) after witnessing sustained selling pressure throughout the day. The index opened on a weak note and extended losses during the first half before finding buying support near the day's lows. Although it recovered part of the decline during the afternoon session, every rebound attracted fresh profit booking, preventing any meaningful upside. The benchmark eventually settled just below the psychologically important 24,000 mark, indicating that sellers continue to maintain control despite intermittent buying at lower levels.

From a technical perspective, Nifty formed a strong bearish candle, signalling continued profit booking after the recent consolidation phase. Despite the weakness, the index managed to hold near its 50-day EMA, which continues to act as an important support zone. The RSI eased to 48.61, indicating weakening momentum, while the PCR declined to 0.73, reflecting a cautious derivatives setup with relatively stronger call positioning. India VIX rose 5.50% to 13.29, indicating an increase in market volatility. Option positioning and technical levels suggest an immediate trading range of 23,800–24,200, with 23,800–23,850 acting as support and 24,150–24,200 likely to remain the immediate resistance zone. Unless the index breaks decisively beyond this range, the overall bias is expected to remain Sideways.

Bank Nifty settled at 57,126.80, losing 708.55 points (-1.23%), as banking stocks remained under pressure throughout the session. After a weak opening, the index extended its decline during the morning trade, while intermittent value buying during the second half failed to generate a sustained recovery. Selling pressure resurfaced in the final hour, dragging the index lower into the close. Technically, Bank Nifty formed a large bearish candle and slipped below its 20-day EMA, signalling deterioration in short-term trend strength. The expected trading range for Bank Nifty is 56,300–57,700, with the overall bias remaining Sideways to Bearish.

Institutional flows remained weak, with Foreign Institutional Investors (FIIs) remaining net sellers of ?819 crore, while Domestic Institutional Investors (DIIs) also turned net sellers with outflows of ?418 crore, reflecting a cautious stance from both institutional participants.

On the sectoral front, Nifty FMCG and Nifty Auto outperformed, supported by selective buying in consumption and automobile stocks. On the other hand, Nifty Media, Nifty Realty, and Nifty PSU Bank witnessed significant selling pressure, emerging as the weakest performing sectors of the day.

Overall, the technical setup indicates that the market remains in a consolidation phase with a cautious undertone. Rising volatility, weak institutional flows, and continued resistance near higher levels may keep the benchmark indices range-bound. Traders are advised to adopt a stock-specific approach while closely monitoring the 23,800 support and 24,200 resistance on Nifty for the next directional move.

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