The day started on a positive note, and during the first half, prices maintained a firm positive bias. However, in the second half, prices gradually cooled off from higher levels, erasing all the morning gains. Eventually, Nifty ended with a marginal cut of around 0.14% at 23618.

Technically, not much has changed, and as highlighted on Monday, Nifty continues to remain in a consolidation phase within the 23200 – 23900 range. The lower end of this range coincides with the 50% – 61.8% retracement of the rally witnessed from the April lows of 22182 to the recent swing high near 24600. On the upside, the higher end of the range coincides with the 20 DEMA and last week’s high, making it an important resistance zone. Hence, the next meaningful momentum move is likely to emerge only on a breakout beyond the 23200 – 23900 range. A sustained move above the 23900 zone could push Nifty back towards the 24500 – 24600 region, whereas a decisive break below 23300 – 23200 may drag the index towards the 22700 mark. Until a range breakout is witnessed, traders are advised to continue with a buy-on-dips and book-profits-at-higher-levels approach while closely monitoring the above-mentioned levels.

NIFTY

Support: 23400 – 23250

Resistance: 23900 – 24000

BANKNIFTY

Support: 53000 – 52800

Resistance: 54000 – 54300

Rajesh Bhosale, Technical Analyst, Angel One