Sensex Today Live: ’Technical setup remains constructive’
“Indian equity markets are expected to open on a mildly positive note, with Gift Nifty trading at 24,099, up by 10 points. Asian markets opened mixed with a positive bias, while US equity futures recovered part of their losses after the hawkish FOMC outcome. Improved global sentiment following the signing of the US-Iran memorandum and easing geopolitical concerns is likely to support market sentiment at the opening bell.
In the previous session, the Nifty 50 extended its winning streak for the fourth consecutive day, gaining around 0.4 percent and sustaining above the 50-day EMA. The index successfully negated the lower high-lower low formation and closed near the crucial resistance zone of 24,100, indicating strengthening bullish sentiment. Short-term moving averages continue to trend higher, supported by easing crude oil prices and a declining volatility index, which are providing a favorable backdrop for the market.
From a technical perspective, momentum indicators remain firmly positive. The RSI has advanced to 60.87, reflecting strengthening bullish momentum, while the MACD continues to maintain a positive crossover with expanding green histogram bars, indicating increasing buying strength. The immediate hurdle for the index is placed at 24,100. A sustained move above this level could pave the way for an advance toward 24,300–24,500. On the downside, the 23,900–23,800 zone is expected to provide immediate support.
Derivatives data also reflects a constructive undertone. The Put Call Ratio (PCR) improved to 1.10 from 1.08 in the previous session, indicating continued put writing activity and strengthening bullish sentiment among traders. The elevated PCR suggests that market participants are building support at lower levels and expecting stability in the near term.
India VIX declined further by 1.31 percent to 13.19, marking its lowest closing level since late February. The sustained decline in volatility signals increasing comfort among bulls and reduced uncertainty in the broader market. Lower VIX levels generally support higher risk appetite and improved market participation.
In terms of price structure, Nifty continues to exhibit a higher high-higher low formation on the short-term charts. The index is consolidating just below a key breakout zone near 24,100, suggesting accumulation at higher levels. A decisive breakout above this resistance could trigger fresh momentum buying and extend the ongoing uptrend.
Bank Nifty also maintained its positive momentum, gaining 0.5 percent and closing above its April high. The index remains firmly above all major moving averages, while the 20-day EMA has crossed above the 50-day EMA, reinforcing the bullish setup. Momentum indicators remain strong, with the RSI rising to 69.15 and the MACD maintaining a bullish crossover. Immediate support is placed around 57,076–56,800 while resistance is seen near 57,800–58,500.
Overall, the technical setup remains constructive with improving momentum indicators, supportive derivatives data, and declining volatility. While some consolidation near the 24,000 resistance level is possible, the broader trend continues to favour the bulls. The immediate range for Nifty is expected between 23,800 and 24,100. A decisive breakout above 24,000–24,100 could pave the way for a move towards 24,500 in the coming sessions,” says Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited.