The Nifty 50 has achieved a significant technical milestone by reclaiming its 200-day exponential moving average (DEMA) for the first time since February 27. According to reports from Essential Business Intelligence, the index rose past the 24,450 level during Monday's session before settling at 24,430.35. However, the index ended 32-odd points lower at 24,399 on Tuesday, snapping its four-day winning streak after testing resistance at the 200-DEMA. This technical improvement comes after the index gained more than 600 points from its June 30 low to its July 6 high, demonstrating sustained momentum in recent trading sessions.
The advance was primarily driven by HDFC Bank and Reliance Industries, which together contributed nearly 118 points to the Nifty's gain. As reported by Essential Business Intelligence, Monday's session formed a bullish candle with a higher high and higher low, while the Nifty closed above the previous session's high. A fall in open interest indicates the rally was driven largely by short covering, suggesting institutional position adjustments rather than new buying interest. However, profit booking emerged near the 200-DEMA and the index failed to sustain above the crucial resistance zone, leading to the Tuesday decline.
The index is now approaching a key resistance zone between 24,482 and 24,520, with immediate support seen around 24,300 and 24,200. According to the technical analysis from Essential Business Intelligence, the July 3 opening gap between 24,195 and 24,252 serves as an important support zone below that level. As reported by Enrich Money, analysts warn that Indian equity markets are likely to trade with a cautious bias after fresh US strikes on Iran that have reignited geopolitical tensions. The renewed escalation has revived concerns over regional stability and global energy supplies, which could dampen investor sentiment and trigger a risk-off move.
Momentum indicators continue to support the bullish outlook, with the 14-day Relative Strength Index (RSI) climbing to its highest level of 2026. As reported by Essential Business Intelligence, the Moving Average Convergence Divergence (MACD) indicator continues to strengthen, while the 20-day moving average has crossed above the 50-day moving average, signaling a positive short-term trend. However, the market could pause or consolidate before attempting another move higher, with the Nifty having generally managed no more than four or five consecutive positive sessions in 2026. The current decline reflects the market's sensitivity to geopolitical developments and the failure to sustain above key resistance levels.
Gabriel India has gained more than 30% from its June 9 low to its June 29 high before moving into a consolidation phase. According to the technical analysis from Essential Business Intelligence, the stock needs to remain above the ₹1,285-₹1,290 zone for momentum to continue, with the stock trading above its key moving averages. The stock could test the ₹1,350-₹1,380 range if it sustains above the ₹1,285-₹1,290 zone, with a stop loss at ₹1,212.
