Trade Setup For June 24: Nifty Sees Key Support At 24,400 As Iran-Israel Tensions Weigh On Markets
The immediate resistance for Nifty 50 is placed at 25,130 levels, an analyst said.
The NSE Nifty 50 faces crucial support at 24,400-24,500 levels, analysts said on Monday, after the market was dragged lower following the escalation of conflict between Iran and Israel.
"The key support is seen at the 24,500–24,400 region — a key confluence area marked by the 50-day EMA and the lower boundary of the recent multi-week range," according to Bajaj Broking Research.
Going forward, the frontline index is expected to maintain positive bias and gradually head towards 25,200 to 25,250 levels in the coming sessions, the brokerage said.
The immediate bias remains positive above 24,700-24,800, with these levels being the confluence of last week low and 20 days exponential moving average, it added.
Aditya Gaggar, director of Progressive Shares, believes the immediate support for Nifty 50 lies at 24,780 levels, whereas the immediate resistance is placed at 25,130.
Market Recap
The benchmark indices ended lower on Monday despite recovering from the sharp intraday lows that were triggered by the escalating geopolitical tensions.
The stock market had opened under pressure following the US strikes on Iran a day earlier, that raised concerns over possible retaliation and disruption of global oil trade routes through the Strait of Hormuz.
The broader indices slipped nearly 1% intraday, with NSE Nifty 50 falling below the 25,000 mark and Sensex down nearly 800 points before trimming losses. The Nifty 50 closed 0.55% lower at 24,975.10, while the BSE Sensex ended 0.61% lower at 81,907.15.
Currency Update
The Indian rupee closed 16 paise weaker at 86.75 against the US dollar on Monday in comparison to its previous close of 86.59 on Friday. The currency's decline comes amid ongoing market uncertainty and geopolitical tensions.
The domestic currency opened 15 paise weaker at 86.74 against the US dollar. The Indian rupee depreciated against the dollar on Monday morning trade pressured by a rise in oil prices and weak risk appetite after US strikes on Iran, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
