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Below the Quote on Pre-market comment for Tuesday September 1 by Sachin Gupta, VP - Technical Research, Choice Equity Broking

Indian equity markets are expected to open on a flat to negative note, with GIFT Nifty trading around 24,183, down 42 points, indicating a mildly weak start for domestic equities. Global cues remain mixed as Asian markets traded cautiously, while U.S. markets ended lower on Monday. Wall Street came under pressure as a war-related rise in crude oil prices revived inflation concerns and increased expectations of tighter monetary policy. The weakness in global equities and elevated crude prices may keep sentiment cautious during the opening session.

The Nifty 50 closed at 24,080.40, down 95.25 points (-0.39%), after opening at 24,117.55 and moving between an intraday high of 24,128.70 and low of 23,993.60. The index opened with a 58-point gap-down and witnessed initial selling pressure, but strong buying emerged near the 24,000 level, helping it recover from the day's low. The daily candle reflected buying interest at lower levels, indicating that 24,000 is developing as an important base. Sector-wise, Bank, Pharma, Private Bank and Healthcare were among the top gainers, while FMCG, Media, Metal, Chemical and Cement remained among the major laggards.

Technically, Nifty continues to trade below all key moving averages, keeping the broader trend cautious despite support emerging around 24,000. The RSI stood at 43.70, while India VIX rose to 11.19, indicating a moderate increase in volatility. Immediate support is placed at 23,900–23,950, while 24,200–24,250 remains the key resistance zone. A sustained move above 24,250 could support a recovery towards higher levels, whereas a break below 23,900 may resume selling pressure. The expected trading range is 23,900–24,250, with the overall bias remaining Sideways.

Bank Nifty closed at 58,024.95, gaining 528.65 points (+0.92%), after recovering sharply from the 57,200 support zone. The index initially failed to sustain above 57,500 and declined, but strong buying emerged at lower levels, followed by a sharp upside move during the closing hours. Bank Nifty formed a strong bullish candle and decisively moved above its 20 EMA and 50 EMA, indicating improving short-term momentum. The RSI improved to 56.89, further supporting the positive setup, although the index is now approaching the upper boundary of its broader range.

Technically, 57,200–57,300 will act as the immediate support zone, while 58,700–58,800 remains the key resistance area. Sustaining above the 20 and 50 EMA keeps the near-term structure positive, while a decisive breakout above 58,800 could strengthen the bullish momentum. On the downside, failure to hold 57,200 could trigger renewed selling pressure. The expected trading range is 57,200–58,800, with the overall bias remaining Sideways to Bullish.

Institutional flows remained mixed on August 31, with FIIs selling nearly Rs 8,000 crore worth of equities, while DIIs bought around Rs 4,588 crore. The strong domestic institutional buying provided some cushion against heavy foreign selling; however, continued FII outflows remain a key concern for the near-term market trend. Sustained DII support could help limit downside pressure if global cues remain weak.

Overall, the market is likely to witness a cautious and range-bound session, with the negative GIFT Nifty indication and weak global markets pointing towards a soft opening. Nifty's ability to hold 24,000/23,900 will remain crucial, while 24,200–24,250 is the immediate hurdle. Bank Nifty continues to show relatively stronger momentum above its key EMAs. Traders may prefer a buy-on-dips approach near key support levels, while keeping a close watch on crude oil prices, global cues and institutional flows for the next directional move.

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