Following the positive indications from Gift Nifty, prices witnessed a gap-up opening. However, after trading within a range during the session, prices gradually came off from the resistance zone and erased the entire morning gains. Nifty eventually ended on a flat note, closing tad above the 23650 mark.

Technically, not much has changed, and as highlighted in the previous outlook, positive openings over the past few sessions have consistently witnessed selling pressure, whereas weak or gap-down openings are getting bought into. Overall, prices continue to remain range-bound, with 23300 – 23200 acting as a strong support zone, while 23800 – 23900 remains a stiff resistance band. The mentioned support zone coincides with the 50% – 61.8% retracement of the recent rally from the April swing low near 22180, while the resistance zone aligns with the 20 DEMA and recent swing highs. The next meaningful directional move is likely to emerge only on a breakout beyond the broader 23200 – 23900 range. A decisive break below 23200 could trigger further weakness towards the 22700 zone, whereas a sustained breakout above 23900 may push Nifty back towards the 24500 – 24600 region. Until a clear breakout is witnessed, traders are advised to continue adopting a strategy of buying near support levels and booking profits near resistance zones 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