Bulls & Bears Collide: Nifty & Sensex Stage a Comeback

The benchmark indices witnessed a volatile trading session. After a roller-coaster activity, the Nifty ended 81 points higher, while the Sensex was up by 320 points.

Technical Analysis

Technically, after an early morning intraday correction, the market took support near 24,675/81,100 and bounced back sharply. Additionally, on daily charts, it has formed a reversal formation near the 20-day SMA (Simple Moving Average), which is largely positive.

Key Support Zones for Traders:

• 24,700/81,200
• 24,650/80,900

If the market sustains above these levels, the chances of hitting 25,000/82,200 – 25,100/82,600 would become brighter. However, a break below 24,650/80,900 could change the sentiment. Below this level, traders may prefer to exit their long positions.

Trend Deciding Level: 24,650

Derivative Market Insights

Market Recap

After a positive start, Nifty witnessed profit booking early on and traded flat for most of the day. However, a sharp rebound in the final hour helped the index close with a gain of 0.33%. The Nifty Midcap 100 outperformed, ending with a gain of 0.55%.

Chart: Nifty vs Sensex Performance

Here’s a visual representation of the Nifty and Sensex movement during the session:

Conclusion

The market’s ability to sustain above key support levels will be crucial for its next leg of rally towards 25,000/82,200–25,100/82,600. However, caution is advised if the market dips below the critical support of 24,650/80,900, which could change the sentiment to bearish.

The cautious undertone in the Options market, with higher Call writing compared to Put writing, underscores the need for careful position management in the upcoming sessions.