IGI Logo

Below the Quote on Pre-market comment for Tuesday July 14 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 24,053, down by 165 points. Global cues remain negative, with elevated crude oil prices near $78 a barrel and continuing US-Iran tensions in West Asia weighing on risk sentiment. The negative indication from Gift Nifty suggests a cautious start for domestic equities, with the broader bias expected to remain sideways during the session.

In the previous session, the Nifty 50 opened with a sharp gap-down at 24,026, dragged lower by renewed geopolitical tensions after reports of the Strait of Hormuz being closed again. The index slipped to an intraday low of around 24,000 before staging a strong recovery through the day, touching a high of 24,259 and finally settling at 24,211, up marginally by 4.10 points. The recovery from the lows reflects resilience in the underlying structure even as the index continues to consolidate within a well-defined range.

From a technical standpoint, the sharp intraday reversal from the 24,000 zone reinforces it as a strong near-term support, while the index continues to face selling pressure on rallies towards 24,250–24,300. The overall price structure remains range-bound, with the index yet to establish a decisive directional bias after the sharp volatility witnessed through the week.

Momentum indicators remain in a neutral-to-mildly-positive zone. The Nifty PCR stands at an elevated 1.27, indicating continued put writing and a cushion of support at lower levels, while India VIX remains at around 13.28 surging 8.39%, reflecting relatively high volatility. A sustained move higher in VIX from these levels would need to be watched closely given the fragile global backdrop.

The immediate trading range for the Nifty is expected between 23,900 and 24,250. On the upside, a decisive move above 24,250 could open the path towards 24,400–24,500, while on the downside, a breach below 23,900 could drag the index towards the crucial 23,800–23,700 support zone. Given the mixed global setup, the index is likely to remain sideways within this band unless a fresh catalyst emerges.

Option chain positioning continues to indicate strong support around the 24,000 strike, where put writers remain active, while meaningful call writing is concentrated in the 24,250–24,400 zone, capping immediate upside. A breakout beyond this resistance band could trigger short covering and accelerate any upward move, though the current setup favours range-bound activity.

Bank Nifty also witnessed a similar pattern of a weak opening followed by a steady recovery. The index opened lower at 57,616 amid broad-based selling in banking stocks, but clawed back through the session to touch a high of 58,219 before closing at 58,131, up 86 points. The Bank Nifty PCR at 0.94 remains slightly below parity, suggesting options positioning in banking names is comparatively more balanced than the broader index. The expected trading range for Bank Nifty today is 57,300–58,500.

Overall, the technical setup points to a sideways bias for the session, with a weak opening indication from Gift Nifty amid negative global cues. The strong intraday recovery in the previous session keeps the broader structure resilient, but the index needs a decisive move outside the 23,900–24,250 range to establish clear directional momentum. Traders are advised to track crude oil prices and geopolitical developments closely, as these remain the key swing factors for the session.

Above views are of the author and not of the website kindly read disclaimer