Levels — 05 Aug 2026

Understanding Support and Resistance in Indian Markets

Support is a price level where buying pressure is expected to be strong enough to prevent further decline. Resistance is a price level where selling pressure is expected to cap further advance. These levels exist because market participants remember prices where they previously bought or sold, creating self-fulfilling clusters of orders around those levels. Round numbers (23,000, 24,000, 25,000) are particularly significant in Nifty because options strikes are concentrated at round-number intervals, creating large order clusters.

How to Use These Levels

• Use support levels to identify potential entry zones for long positions and place stop-losses below the next support level.
• Use resistance levels to identify potential profit-taking zones and set upside targets.
• When a level is broken with volume conviction, it often flips: broken support becomes new resistance, broken resistance becomes new support.
• Combine with VIX data and FII/DII flows for context on whether levels are likely to hold or break.