Cautious sentiment surrounding the fragile US-Iran truce weighed on domestic equities, resulting in a subdued start to the trading session. The benchmark Nifty50 index traded within a narrow range throughout the day, reflecting investor indecision ahead of the mid-week holiday. Ultimately, the index ended marginally lower by 0.03%, indicating a lack of strong directional cues amid prevailing geopolitical uncertainty.

The technical setup of the Nifty remains largely unchanged, with limited movement observed on the price chart. The index continues to trade within the constrained range of the 20 and 50 DEMA, indicating a lack of directional conviction. A decisive breakout beyond this zone is essential to revive momentum in the near term. On the levels front, 23800-23700, the confluence of 20 DEMA and previous week closure represents a cushioning zone, followed by the sacrosanct support of 23600 zone. On the flip side, a sustained move above the 24000-24050 hurdle would reaffirm bullish momentum and potentially pave the way for an advance towards the 24300-24350 resistance zone in the near term.

Going forward, we continue to advocate a buy-on-dips strategy near the identified support zone. Traders are advised to selectively focus on thematic outperformers, as the broader market trend remains uncertain and lacks clear directional strength in the near term.

Key levels to watch

NIFTY

Support: 23800 – 23700

Resistance: 24050 – 24300

BANKNIFTY

Support: 54450 – 54200

Resistance: 55400 – 55800

Osho Krishan, Chief Manager – Technical & Derivative Research, Angel One