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Sensex and Nifty 50 ended a choppy trading session nearly unchanged on Wednesday, 30 April, as market sentiment remained subdued due to geopolitical tensions and cautious guidance from Bajaj Finance. Although the domestic market has rebounded by 10% from its April lows—driven by strong foreign institutional inflows and India's perceived relative insulation from global trade disputes—escalating geopolitical concerns have tempered risk appetite.

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Indian benchmark indices, Sensex and Nifty 50, ended a choppy trading session nearly unchanged as market sentiment remained subdued due to geopolitical tensions and cautious guidance from Bajaj Finance. By the close, the Sensex slipped 0.06% (46.14 points) to 80,242.24, while the Nifty inched down 0.01% (1.75 points) to finish at 24,334.20.

Although the domestic market has rebounded by 10% from its April lows—driven by strong foreign institutional inflows and India's perceived relative insulation from global trade disputes—escalating geopolitical concerns have tempered risk appetite.

The market did its best over the last seven days to climb higher, but has not managed. However, the trends have managed to arrest any kind of selling pressure that emerged thus indicating that the overall markets continue to remain positive. A small body candle once again highlights the contemplation that we witnessed in Nifty clearly aimed to erase the nervousness in Nifty that had been holding back the revival.

After some volatile movements, the Nifty managed to give a better closing. Important support to watch out for is a range that is getting built based on the option data between 24200 and 24500, hinting at some strong Put writing emerging. Based on PCR data, the negative bias is not ruled out yet, and the short covering action that may follow based on global cues could help the market rise rapidly.

As a rise is being attempted, resistance remains at 24500 with the Max Pain Point at 24300 continuing to be a supporting part. The levels around 24500 would be the next hurdle that the index should attempt to conquer on the way up.

The indices seem to have been caught in a range and this can create some confusion at the moment. The positive trends that are emerging at lower level are highlighting that the potential to step up is increasing by the day. As the highs around 24500 are continuing to be challenged the probability of scaling beyond this zone looks probable.

We have been witnessing some consolidation and the range bound around 24250 to 24350 is witnessing some strong Put writing. The base that is getting built is hinting at the Max Pain Point around 24350 would be a key level to watch out for. A move above this area is needed hence it would be a testing phase for the trends ahead. Some heavy Put writing has emerged at 24300. The Put Call Ratio (PCR) has now moved to 1 in Nifty and Bank Nifty giving a sense of discomfort to the bullish camp as we head into the next trading session.

View all stories by Raja Venkatraman here.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

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