By S. JHA
Angel One sees a marginally bullish technical setup for Nifty, with 24,200 emerging as key support and a sustained break above 24,400-24,500 potentially opening the door to further gains.
Mumbai, August 26, 2026 — The Nifty 50 enters Wednesday’s session with the technical setup showing a marginal shift in favour of the bulls, according to a technical note from Angel One. The brokerage sees 24,200 as the immediate support zone, while 24,400-24,500 remains the key resistance band that could determine the index’s next directional move.
The market’s near-term structure has improved after Nifty reclaimed the crucial 20-day exponential moving average (20 DEMA). The 14-day Relative Strength Index (RSI) has also registered a positive crossover, adding to signs of improving momentum.
Angel One said the recent turnaround from the confluence of the 50% Fibonacci retracement level and the 50 and 100 DEMA has created a robust support zone around 24,200.
The immediate support is placed at 24,194-24,200, while 24,050 remains the next important and stronger support level, corresponding to the golden retracement level.
This makes the 24,000-24,200 region an important cushion for the index. A sustained hold above this zone could allow bulls to retain control of the short-term trend.
On the upside, the 24,400-24,500 zone remains the immediate hurdle.
Angel One highlighted the formation of a Bullish Engulfing candlestick pattern, which signals a potential bullish reversal and keeps this resistance band firmly in focus.
A sustained move above 24,500 could reinforce the positive momentum and open the possibility of further gains in the coming sessions, provided the broader market structure remains supportive.
However, failure to cross the resistance zone could keep the index within the broader 24,000-24,500 range.
Tuesday’s monthly expiry session provided some relief to the benchmark indices after the initial weakness around the pivotal support zone was overcome during the second half of trading.
According to Angel One, bulls showed resilience around the 50 DEMA, while the subsequent recovery above the 20 DEMA helped Nifty reclaim the 24,300 level.
The Nifty 50 ended the session around the 24,300 zone, gaining 0.48%, reflecting renewed buying interest and an improvement in market sentiment.
The price action suggests that buyers are attempting to regain control after recent volatility. The key question for Wednesday, therefore, is whether the index can convert the 24,400-24,500 resistance into a new support zone.
The broader market recovery was accompanied by strength across sectors, with pharma stocks standing out for their strong performance.
The sector’s relative strength could remain an area of interest for traders if the broader market continues to recover. However, traders should distinguish between index-level momentum and individual stock setups, particularly in a volatile expiry-week environment.
Global markets provided a supportive backdrop despite a mixed close on Wall Street.
Asian and European equity markets traded with strong gains, potentially offering some support to domestic sentiment at the start of the session.
However, domestic technical levels remain more important for determining Nifty’s immediate trajectory.
For traders, the technical picture can be broadly divided into three zones:
Above 24,500: A sustained breakout could strengthen the bullish setup and signal further upside.
24,200-24,500: This remains the crucial trading range, with resistance at the upper end and support near the lower end.
Below 24,200: Weakness could intensify, with 24,050 becoming the next important support.
Below 24,000: A decisive break could weaken the current bullish setup and signal a broader correction.
The key takeaway is that 24,200 is the level bulls need to defend, while 24,400-24,500 is the zone they need to conquer. Until either side breaks decisively, traders may see range-bound and volatile price action.
Angel One’s technical assessment therefore remains cautiously bullish rather than aggressively bullish. The positive RSI crossover, recovery above the 20 DEMA and Bullish Engulfing pattern favour the bulls, but confirmation will come only if Nifty sustains above the 24,400-24,500 resistance band.
(This is a market analysis based on technical observations provided by Angel One and is not investment advice. Traders should consider their risk tolerance and conduct independent research before taking positions.)
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