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Below the Quote on Pre-market comment for Wednesday July 8 by Hitesh Tailor, Technical Research Analyst at Choice Broking

Indian equity markets are expected to open on a weak note, with Gift Nifty trading at 24,246, down by 164 points, indicating a gap-down start for the benchmark indices. Global cues remain mixed as Asia-Pacific markets traded cautiously, while U.S. futures remained largely flat amid persistent geopolitical concerns and uncertainty surrounding the Federal Reserve's policy outlook. Despite the softer opening indication, the domestic market's broader technical structure remains constructive, supported by strong underlying trends and subdued volatility.

The Nifty 50 witnessed profit booking in the latter half of the previous session and ended 0.13 percent lower on July 7 after a strong four-day rally. The index has now entered a phase of consolidation as traders await the commencement of the quarterly earnings season. While short-term momentum has moderated, the broader trend remains positive as the index continues to trade above all major moving averages except the 200-day EMA. Going forward, the 24,300–24,200 zone is expected to act as immediate support, while 24,000 remains a crucial support level for the ongoing uptrend. On the upside, the 24,500–24,600 zone continues to be a major resistance area. A decisive breakout above this hurdle would be required to trigger the next leg of the rally.

Nifty formed a bearish candlestick with long shadows, indicating indecisiveness after the recent rally. Despite slipping marginally below the 200-day EMA, the index continues to trade above its other key moving averages, while the 10-day EMA crossing above the 100-day EMA keeps the medium-term trend positive. Momentum remains supportive, with RSI at 63.02 and MACD sustaining above the signal and zero lines.

The PCR at 1.08 reflects continued support-building at lower levels, while India VIX eased to 11.65, indicating a stable market environment. Option data suggests immediate support at 24,200–24,000 and resistance at 24,500–24,600. A sustained move above the resistance zone could trigger fresh upside momentum.

In terms of price structure, Nifty remains in a healthy consolidation phase after a strong rally over the previous sessions. The ongoing range-bound movement appears to be a process of absorbing supply near higher levels rather than a sign of trend reversal. As long as the index sustains above the 24,200–24,000 support band, the broader bullish structure is expected to remain intact.

Bank Nifty also witnessed mild profit booking and ended lower by 91 points in the previous session. The index formed a bearish candle but continues to trade comfortably above all major moving averages, which are maintaining a rising trajectory. A notable development is the 50-day EMA crossing above the 200-day EMA, reflecting strengthening long-term trend conditions. While the MACD has generated a bearish crossover for the first time since May, the RSI remains above the 60 mark at 63.45, indicating that the broader trend continues to favour the bulls. Immediate support is placed around 57,800–57,500, while resistance is seen near 58,800–59,200.

Overall, the technical setup suggests a weak opening but a range-bound trading session with a positive underlying bias. The broader market trend remains constructive, supported by healthy price structure, bullish momentum indicators, low volatility, and supportive derivative positioning. The immediate trading range for Nifty is seen between 24,200 and 24,500, while a decisive breakout above 24,500–24,600 could pave the way for a move towards higher levels in the coming sessions.

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