The NSE Nifty 50 finds support in the Rs 23,800-23,750 zone, according to Sudeep Shah, head of technical and derivatives research at SBI Securities. GIFT Nifty signalled a gap-down start on Wednesday, with futures trading 0.87% lower at 23,916.5 at 11:02 pm.
Global cues were mixed, as uncertainty in the US-Iran talks led to oil prices reclaiming the $100-mark. Benchmark Brent for July delivery surged more than 4% to trade near $100.12 at around 11:30 am EST.
The US stock market, however, edged higher, with Nasdaq surging about 1% driven by a surge in AI stocks.
Going ahead the immediate resistance for Nifty is placed in the 24,050-24,100 zone, according to Shah.
"Any sustainable move above this zone could result in Nifty extending its pullback towards 24,250, followed by 24,400 in the short term," the analyst said.
The broader structure suggests that the index remains trapped inside a consolidation band, and a decisive breakout on either side of the range is likely to set the next directional trend for the index, as per Dupesh Dhameja, derivatives research analyst at SAMCO Securities.
"Till then, a stock-specific and range-trading approach remains the preferred strategy for the current market setup," Dhameja stated.
Nifty Bank
The Nifty Bank index finds immediate support in the Rs 54,700-54,600 zone, according to Shah. The analyst pegs immediate resistance for the index at 55,500-55,600 levels
"Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 56,000, followed by 56,400 in the short term," Shah stated.
The broader structure suggests that Nifty Bank index remains inside a broader consolidation phase, and a decisive breakout beyond the immediate trading range is likely to trigger the next meaningful directional move, as per Dhameja.
He also recommended a "tock-specific and range-trading approach" to stock traders.
Market Recap
The benchmarks snapped their two-day gaining streak. The Nifty 50 fell 0.49% or 118 points to close at 23,913.70. Sensex declined 0.63% or 479.26 points to end at 76,009.70. The rupee weakened 0.5% to close at 95.69 against the US dollar, compared to 95.24 in the previous session. The currency declined after a three-day run of gains.
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