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Below the Quote on Pre-market comment for Wednesday July 22 by Sachin Gupta, VP - Technical Research, Choice Equity Broking

Indian equity markets are expected to open on a mildly negative note, with Gift Nifty trading at 24,117, down by 52 points. However, Asian markets traded higher in early deals, tracking technology-led gains on Wall Street as investors awaited earnings from major U.S. technology companies. Despite the weak indication from Gift Nifty, the domestic market continues to hold its broader bullish structure, supported by favorable volatility conditions and resilience above key moving averages.

In the previous session, the Nifty 50 extended its corrective phase for the second consecutive day, declining 0.2 percent and closing below the 24,200 mark. The index largely traded within the previous session's range, reflecting indecisiveness among market participants. While short-term momentum has softened, the benchmark index continues to hold above its key support zones, suggesting that the broader trend remains constructive.

From a technical perspective, the Nifty 50 formed a small-bodied bearish candle with shadows on both sides, indicating a tug-of-war between bulls and bears. The index successfully defended its 10-day EMA and 100-day EMA for the third straight session, while continuing to trade comfortably above the 20-day and 50-day EMAs. This highlights underlying strength despite recent consolidation.

Momentum indicators are currently signalling a sideways bias. The RSI stood at 54.05, remaining above the neutral 50 mark and indicating that bullish momentum has moderated but not reversed. Meanwhile, the MACD continues to remain above the zero line, suggesting that the broader uptrend remains intact despite the absence of strong directional momentum. These indicators collectively point toward a consolidation phase rather than a trend reversal.

The immediate support for Nifty is placed at 24,100, followed by the psychologically important 24,000 level, which is expected to act as a crucial support zone. On the upside, the 24,300–24,400 zone remains a key hurdle for the bulls. A sustained move above this resistance area could revive upward momentum and open the path toward higher levels. Until then, the index is likely to continue oscillating within the established trading band.

Derivatives data reflects a neutral-to-positive undertone. The Nifty Put-Call Ratio (PCR) eased to 1.01 from 1.28, indicating some reduction in aggressive bullish positioning. However, the PCR remains above the 1.0 mark, suggesting that put writing activity continues to provide a supportive base for the market.

The India VIX declined 2.93 percent to 12.6, extending its downward trajectory. The volatility gauge remains below all major moving averages, indicating that market participants remain comfortable despite the ongoing consolidation. A further decline below the 12 level could provide additional confidence to the bulls and support stability in the market.

Option chain positioning suggests strong support around the 24,000 strike, where put writers continue to remain active. On the higher side, call writing is concentrated in the 24,300–24,400 zone, reinforcing this region as a key resistance area. A decisive breakout beyond this zone could trigger fresh buying interest and accelerate the next leg of the rally.

Bank Nifty also remained under pressure and declined 0.2 percent while trading within Friday's range. The banking index formed a Gravestone Doji candlestick pattern, indicating rejection at higher levels and a cautious undertone among traders. Despite this, the index continues to trade comfortably above all key moving averages, which remain positively aligned. Momentum indicators remain largely neutral, suggesting consolidation rather than weakness. The broader structure remains healthy, though a decisive move beyond the recent range will be required to establish the next directional trend.

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