Dalal Street Investment Journal

The 14-period daily RSI is currently trading near 31. During the recent recovery attempt, the RSI failed to sustain above the 40 level and reversed lower.

The current decline has matched the longest consecutive weekly losing streak witnessed in the recent past. The magnitude of the fall has also exceeded the correction seen between June and August 2025.

Nifty ended the day 279.50 points down at 23,118.60, its lowest closing level since April 6, 2026. From the intraday high of 23,592, the benchmark gave up nearly 474 points, underlining the extent of the reversal from higher levels.

In the near term, Nifty needs to reclaim the 24,02524,050 zone to improve market sentiment and revive the possibility of a short-covering move.

Traders can maintain a stop loss at Rs 20,000 to manage downside risk. The overall trend remains positive as long as the stock holds above this key support level.

Going forward, the 23,950 level is likely to remain an important support. A decisive break below this level could increase selling pressure and expose the index to the July 27 gap zone placed between 23,892 and 23,824.

The market will now respond to India's GDP numbers, which were released after market hours on Monday and came in above expectations.

Granules India is showing stronger momentum as it approaches a potential breakout above Rs 873-875, while the Nifty's bearish technical setup keeps the broader market under pressure.

A month-long consolidation has ended with a volume-backed breakout. The stock is now holding above key moving averages.

Going forward, the 24,000-24,040 zone is expected to act as an immediate support area for the Nifty.

The Closing Auction Session (CAS) had a noticeable impact on the final settlement, helping the index close at the day's high of 24,334.55.

A sustained move above 24,473 would strengthen the case for the index to resume its broader upswing.

If selling pressure persists, the Nifty could move towards its 20-DMA, currently placed near 24,287. Below this, the 50% retracement level around 24,190 would become the next key support.

A close above 24,630 may strengthen the bullish setup and open the door for a move towards the previous high of 24,774.

Nifty 50 closed at 24,207.75 after erasing early gains, while India VIX fell 4.6% to a multi-month low. Here are the key support and resistance levels to watch on Thursday.

For the August F&O expiry, holding above 24,194 will remain important. Sustaining above that level could keep the possibility of short covering open, according to the technical analysis.

The Nifty 50 fell for a second straight week but traded in its narrowest range of 2026, with support near 24,000 and resistance at 24,371 set to shape the next move.

Since the introduction of the Closing Auction Session (CAS), the Nifty has frequently formed candles with the open = high, or close = high, at or near the same level.

Interestingly, since the introduction of CAS, the Nifty has frequently formed candles where the opening price is either equal to or close to the day's high.

On the upside, the Nifty needs to sustain and close above 24,520 to regain momentum.