The Nifty started the day on a positive note and oscillated within previous session range - ICICI Direct
Nifty : 23962
Technical Outlook
Day that was ..
• Indian equity markets ended higher with the benchmark Nifty index rising 0.35%, amid the broader market strength. Nifty settled at 23962 up ~80 points. Market breadth turned positive with an A/D ratio of 3:1. Broader markets has relatively outperformed the benchmark with both Nifty Mid and Smallcap gained 1.4% and 1.8% respectively. Baring IT and Auto all major sectoral indices closed in positive while Realty, Consumer durables and PSUs Banks were the top gainers.
Technical Outlook :
• The Nifty started the day on a positive note and oscillated within previous session range. The daily price action resulted into inside bar, suggesting a temporary breather following the previous session's steep decline.
• Index is expected to open on a positive note, supported by firm global cues and easing concerns over a broader escalation in the US-Iran conflict. Key highlight is that, despite resurfacing geopolitical tensions, the index has shown resilience over the past two sessions, with supportive efforts emerging around the 50-day EMA at 23825 to establish a near-term support base.
• However, from the structural perspective it has maintained its higher peak and trough formation on the weekly time-frame. Thereby, we believe, the current decline is more of a healthy retracement of the previous major up move recorded from the 11 June 2026 lows of 23072, indicating temporary breather.
• We believe, ongoing retracement is a part of the prevailing uptrend which would make market healthy. Therefore, any dip from hereon should be used as buying opportunity as strong support is placed in the 23600-23400 zone which we expect to hold. Further, any ease of in geopolitical tension would fuel the momentum towards 24500 being placement of 200 days EMA.
• As per change of polarity concept, earlier breakout area of 23600 which coincides with the gap area and 61.8% retracement of previous rally would act as a strong support threshold.
• The mid-cap index staged a robust rebound from its 50-day EMA, recovering entirely from the previous session's decline. Similarly, the small-cap index saw a strong bounce after holding its 18-month falling trendline breakout level, reinforcing prevailing uptrend remains intact.
Intraday Rational :
• Trend – Supportive efforts emerging from 50-day EMA over the past two session, indicating bias remains positive.
• Levels – Buy around 61.8% of yesterday range.
Nifty Bank : 57252
Technical Outlook
Day that was :
Bank Nifty Index ended the day on positive note at 57252 up 0.9% on back of mixed global cues. Nifty PSU Bank relatively outperformed for the day gaining 1.7%.
Te chnical Outlook :
• Index opened on positive note and thereafter traded in a range 57500-57000 levels throughout the day. Consequently, the daily price action resulted into Inside bar, after previous day sharp selloff indicating prolong consolidation. Key point to highlight is that index held Wednesday panic low (56549) and closed in vicinity of 20-day EMA.
• Structurally Index is undergoing healthy consolidation Since June low after 11% rally, weekly stochastic oscillator is cooling off that would help Index form a strong base and set the stage for next leg of up move. On larger degree time frame Index has maintained higher high higher. Immediate resistance is placed at 58000. A decisive close above that level would confirm extension of rally towards 60000.
• Immediate support is placed around 56200 levels being 200-day EMA and 61.8% retracement of recent up move.
• PSU Bank Index rebounded after taking support at 52-week EMA coinciding with lower band of consolidation of past 3 months. Therefore, holding above April & May identical lows will keep pullback options open and set the stage for next keg of upmove.
Intraday Rational :
• Trend - Index reclaimed its short-term 20-day EMA after a sharp sell off in previous session, indicating post healthy profit booking index to resume its prevailing upmove.
• Levels : Buy around 61.8% of yesterday range.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
