Sensex gained 331 points to close at 77,264 while Nifty 50 rose around 85 points to end the session at around 24,176 on Friday. The broader markets also closed in the green as India VIX, which measures market volatility, dropped more than 4%.
According to Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities, traders should focus on risk management and avoid aggressive directional bets amid the current market volatility. He noted that Nifty has been consolidating near a crucial support zone around 24,000, with key resistance near 24,250-24,300.
The Nifty index has been oscillating within the narrow range of 24,379–24,077 levels over the last seven trading sessions, indicating ongoing consolidation. The index is trading below all its crucial moving averages, and momentum indicators suggest continued consolidation. The 24,000–23,950 zone will act as an important support, while the 20-day EMA zone of 24,250–24,300 remains a crucial hurdle.
“Traders should focus on risk management and avoid taking aggressive directional bets until the market stabilises.”
Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities
Similarly, the Sensex has been consolidating within a narrow range of 1,053 points over the past seven trading sessions. It has closed lower for the third consecutive week, forming a bearish weekly candle. The 76,600-76,500 zone is expected to provide crucial support, with resistance at the 100-day EMA region of 77,500-77,600.
For the current weekly expiry, Nifty's immediate support is likely at 24,000, with significant Put writing, while 24,400 is expected to act as immediate resistance due to higher Call writing. A breakout on either side could determine the next directional move.
Background
The Indian stock market has been experiencing heightened volatility, with indices showing sharp and divergent moves. This has prompted analysts to advise caution and focus on stock-specific opportunities rather than broad index exposure.
Looking ahead, traders should continue to exercise caution and focus on sectors and stocks exhibiting relative strength. Key levels on the indices will be crucial in determining the market's next move.
