It was a week of consolidation for the benchmark index, as Nifty largely traded within a narrow range throughout the week and eventually ended with marginal gains of around 0.27%, closing tad above the 23700 mark.

On the daily chart, prices over the past several sessions have been forming a series of small-bodied candles, alternating between green and red formations, indicating a lack of decisive momentum and a market awaiting a fresh trigger for the next directional move. The broader structure remains range-bound, with 23300 – 23200 acting as a strong support zone, while 23800 – 23900 continues to remain a stiff resistance band. The support zone coincides with the 50% – 61.8% retracement of the recent rally from the April swing low near 22180, whereas the resistance zone aligns with the 20 DEMA and recent swing highs. The next meaningful directional move is likely to emerge only on a decisive breakout beyond the broader 23200 – 23900 range. A sustained break below 23200 could trigger further weakness towards the 22700 zone, while a breakout above 23900 may push Nifty back towards the 24500 – 24600 region. Until a clear breakout is witnessed, traders are advised to continue with a strategy of buying near support levels and booking profits around resistance zones while closely monitoring the above-mentioned levels.

NIFTY

Support: 23500 – 23220

Resistance: 24000 – 24100

BANKNIFTY

Support: 53500 – 53000

Resistance: 54400 – 54800

Rajesh Bhosale, Technical Analyst, Angel One