The Indian equity market witnessed sharp intraday volatility before staging a b recovery. The Nifty rebounded from the 24,900 level and closed near 25,250, supported by buying interest at lower levels. Technical indicators pointed to underlying support, while options data reflected defined support and resistance zones. Bank Nifty outperformed the broader market, contributing to the recovery.
The session began with a steep decline, with the Nifty opening nearly 230 points lower. Selling pressure dominated early trade as the index weakened through the morning. Sentiment shifted as the Nifty approached the 24,900 mark, where buyers emerged consistently. Subsequent declines attracted buying interest, indicating support at lower levels.
The index attempted a gradual recovery but faced resistance near 25,200 during the first half, resulting in range-bound movement. Buying momentum strengthened in the second half, enabling the Nifty to reclaim intraday highs and close with a gain of about 130 points near 25,250.
Daily chart patterns showed a bullish candle with a long lower shadow, indicating buying on declines. According to Motilal Oswal senior analyst Chandan Taparia, the market focus remains on the 25,200 level. He said a sustained move above this level could open the way toward 25,400 and 25,500. On the downside, 25,000 and 24,900 are acting as key support levels.
Options market data supported this view. Call open interest was highest at the 25,500 and 26,000 strikes, while put open interest was concentrated at the 25,000 and 24,300 strikes. Call writing at 25,500 and 26,000 indicated near-term resistance, while put writing at 25,000 and 24,300 suggested support at lower levels. Based on this positioning, the Nifty is expected to remain within a broader range of 24,700 to 25,700, with near-term movement between 24,900 and 25,400.
Bank Nifty also saw a sharp intraday reversal. The index declined early and slipped to around 58,100 before attracting buying interest at lower levels. Strong gains in the second half lifted the index, with the daily chart forming a bullish candle. Chandan Taparia said Bank Nifty is showing relative outperformance. He added that a sustained move above 59,250 could lead to levels of 59,750 and 60,000, while failure to hold above this level could result in a decline toward 59,000–58,750.
Chandan Taparia also identified select stocks based on technical indicators. He said HCL Technologies has moved out of a consolidation phase with a breakout and is taking support from the 50-day exponential moving average. The relative strength index is in the positive zone. The stock was trading near Rs 1,720, with a stop loss at Rs 1,665 and a target of Rs 1,830.
Steel Authority of India showed a positive ‘pole and flag’ pattern on the charts, supported by rising volumes, indicating sustained interest. The stock was trading near Rs 155.56, with a stop loss at Rs 152 and a target of Rs 165.
Oil India showed strength after returning to a support zone following a breakout from a symmetrical triangle pattern. The MACD indicator remained positive. The stock was trading near Rs 448, with a stop loss at Rs 434 and a target of Rs 478.
