The Indian equity market opened flat on Wednesday, following global trends. Nifty started the day on a neutral note, experiencing a recovery in the first half, but this was short-lived. Profit booking ensued in the second half, leading Nifty to close negatively at 24,918. The volatility index, INDIA VIX, rose by 2%, settling at 13.63, signaling an increase in market volatility.

Technically, on the daily scale, Nifty failed to sustain above the trend line resistance and formed a red candle, indicating weakness. As long as the index remains below the trend line resistance, which is around the 25,150 level, caution is advised on the upside. On the downside, 34-DEMA support is positioned around 24,750, which will serve as significant support for Nifty in the short term.

Bank Nifty started the day on a flat-to-negative note, recovering slightly in the first half but faced selling pressure in the second half, ultimately closing negatively at 51,010. On the daily chart, the index formed a red candle, reflecting weakness. On the downside, the 100-DEMA support is placed near 50,250, serving as a key level for Bank Nifty. On the upside, the 51,400-51,420 zone acts as a short-term hurdle. A sustainable move above 51,420 could push Bank Nifty towards 51,800-52,000 levels.”

The Author of this commentary is Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.