Once again, the week started on a negative note with a gap-down opening. During the initial hours, prices slipped further to test levels around 23300; however, as the day progressed, strong recovery was witnessed from lower levels. Nifty reclaimed all the lost ground, moved back above 23650, and eventually ended tad below the same with a marginal gains of around 0.03%.

On the daily chart, markets appear to be in a consolidation phase. Over the past week, prices have twice defended the 23300 zone, which coincides with the 50% retracement of the rally seen from the April lows of 22180 to 24600. Going ahead, 23300 and 23100, the latter aligning with the 61.8% retracement, remain a crucial support zone for Nifty. On the upside, the 23850 – 23900 zone, coinciding with last week’s high and the 20 DEMA, is seen as immediate resistance. On the hourly chart, a double bottom formation accompanied by a positive divergence is visible around the 23300 mark. A decisive move above 23900 could trigger fresh positive traction, potentially pushing prices towards the 50 DEMA near 24150 and higher levels thereafter. Thus, for the next few sessions, 23300 – 23100 on the downside and 23850 – 23900 on the upside remain the key trading zones to watch. The next meaningful directional move is likely to emerge only on a breakout beyond this range. Traders are advised to closely monitor these levels and structure trades accordingly.

NIFTY

Support: 23400 – 23250

Resistance: 23900 – 24000

BANKNIFTY

Support: 53000 – 52800

Resistance: 54000 – 54300