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Below the Quote on Pre-market comment for Wednesday September 2 by Sachin Gupta, VP - Technical Research, Choice Equity Broking

Indian equity markets are expected to open on a weak note, with Gift Nifty trading at 24,025, down by 66 points. Asia-Pacific equities are also facing renewed pressure, indicating a cautious start to the domestic market. The Nifty 50 recovered above the 24,000 mark during the closing auction session but ended moderately lower on September 1, keeping the near-term setup cautious and consolidative.

From a technical standpoint, the Nifty 50 formed a high-wave candlestick pattern on the daily timeframe, indicating indecision between bulls and bears. The index continues to trade below all key moving averages, while the short-term moving averages remain in a downward trend. The 10-day EMA has also slipped below the 50-day and 100-day EMAs, indicating weakening short-term momentum. The RSI has declined to 42.86, while the MACD remains below the zero line with the red histogram expanding, suggesting that bearish momentum is gradually strengthening. The 24,000–23,950 zone remains the crucial support area. A decisive break and sustained move below this zone could drag Nifty towards 23,800 and 23,600. On the upside, 24,200 remains the immediate hurdle, followed by 24,400.

Derivatives data indicates a cautious undertone. The Put-Call Ratio (PCR) declined to 0.89 from 0.91 in the previous session, indicating a slight weakening in sentiment. Option-chain positioning shows strong put interest around 24,000, while call writing remains prominent around 24,100–24,200, keeping the upside capped in the immediate term.

India VIX remained flat at 11.19, trading in a broad intraday range of 9.25–12.12 and staying below its short-term moving averages, suggesting that volatility remains relatively contained unless the index witnesses a sharp directional move.

Bank Nifty also turned weak, forming a bearish candle with wicks on both sides and declining 1.06%. The index slipped below its short-term moving averages, signalling caution, although it continues to trade above its medium- and long-term moving averages, keeping the broader structure relatively positive. RSI and MACD have remained largely sideways, indicating a lack of strong directional momentum. Immediate support is placed around 57,200–57,000, while resistance is seen near 57,700–58,000. A decisive breakout or breakdown from this range will determine the next directional move.

Overall, the technical setup suggests a cautious and range-bound market with a negative bias in the near term. The Nifty is likely to remain volatile within the 23,800–24,200 range, with 23,950–24,000 acting as the key support zone and 24,200 as the immediate resistance. A sustained move above 24,200 could open the door towards 24,400, while a decisive break down below 23,950 may extend the downside towards 23,800 and 23,600.

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