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In the last week, the benchmark indices experienced volatile activity. After a roller-coaster session, the Nifty ended with a 1.30 percent gain, whereas the Sensex was up by 900 points. Among sectors, Auto and Metal indices outperformed. Auto rallied 5.51 percent, and Metal gained 5.85 percent, whereas the IT index lost the most, shed 1.47 percent. During the week, the market bounced back sharply from lower levels but failed to clear the crucial resistance zone of 25,000/82000.

Technically, 24,500/80400 remains a strong support zone for short-term traders. As long as the market trades above this level, the bullish setup remains intact. On the higher side, the 50-day SMA (Simple Moving Average) or 25,000/82000 would act as a crucial resistance zone for traders. A successful breakout above 25,000/82000 could push the market towards 25,200/82600. Conversely, below 24,500/80400, market sentiment could change. If the index falls below this level, it is likely to retest 24,350/79900. Further downside may continue, potentially dragging the index to the 200-day SMA or 24,100/79400.

For Bank Nifty, the trend is weak, but a fresh sell-off is possible only after the dismissal of 53,500. Below this level, it could slip to the 200-day SMA or 53,000 and 52,600–52,500. On the flip side, above 54,350, a pullback could continue up to the 20-day SMA or 54,800 and 55,350.

The current market texture is non-directional and volatile; hence, level-based trading would be the ideal strategy for short-term traders.

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