- Nifty 50 holds crucial support at 24,000 amid flat market close on Tuesday
- Initial resistance for Nifty lies between 24,179 and 24,280, says analysts
- US indices fell on bond yield rise and US-Iran tensions, impacting sentiment
Even as benchmark indices closed flat on Tuesday, the 24,000 range remains crucial support for Nifty 50, while 24,179–24,280 will act as the initial resistance zone for the next trading session, according to technical analysts.
This comes as GIFT Nifty trades 0.19% higher at 24,097.50, indicating a possible postive start to the Indian equities, while concerns remain as all US indices were trading lower on Tuesday. Teach heavy Nasdaq slipped 0.90%, while Dow Jones and S&P 500 were trading 0.77% and 0.66% down as bond yields surge and military tensions between the US and Iran escalate again. Additionally, oil prices rallied, with Brent crude trading around $93 a barrel, while West Texas Intermediate was above $89.
According to Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, "From a Technical perspective, Nifty remains below the 200-DEMA, placed near 24,362, which continues to act as a significant overhead barrier. The inability to reclaim the moving average has kept the broader near-term structure subdued, while the repeated failure to sustain above higher levels highlights the absence of strong follow-through buying."
He added, "Momentum remains weak, with the RSI at 42.86, below both the neutral 50 mark and its RSI average of 50.42, indicating subdued underlying momentum. The 24,000 level remains the immediate and crucial support for the index. On the upside, 24,179–24,280 will act as the initial resistance zone, followed by the broader 24,300–24,362 band, where the range ceiling and 200-DEMA converge."
As per the expert, Nifty continued to be trapped in a range-bound but mildly weak structure, with 24,000 acting as the immediate line of defence. A sustained hold above this level is essential, while a decisive failure to protect 24,000 could expose the index towards the 23,800–23,600 zone in the coming sessions.
On Tuesday, The Indian stock market ended flat following weak global market cues, as the escalation in the US-Iran war and the rising crude oil prices dented sentiment. The Nifty 50 settled 24.60 points, or 0.10%, lower at 24,055.80. The Sensex ended 12.99 points, or 0.02%, lower at 76,944.28. Sectotrally, Nifty Pharma, Nifty Realty, Nifty PSU Banks and Nifty Healthcare declined, while Nifty FMCG, Nifty Media, Nifty Metals, Nifty Auto and Nifty IT gained during the session.
The Nifty 50 managed to defend the crucial 24,000 support level, but the recovery remained subdued, according to Om Mehra, Technical Research Analyst, SAMCO Securities
"The index continues to hold above its Supertrend support, placed at 23,990, even as it remains below the middle Bollinger Band, placed at 24,310. The lower Bollinger Band remains the nearer cushion on the downside. The RSI is placed at 43, reflecting a mild downside skewed. The immediate support is placed at 23,950, followed by 23,900. On the upside, 24,250 remains the key resistance," Mehra said.
The expert expects that Nifty is likely to remain range-bound to negative unless it decisively reclaims the middle Bollinger Band.
Bank Nifty Outlook
Nifty Bank continued its volatile and choppy trading pattern, closing at 57,409.60, down 615.35 points or 1.06%. Over the past 20 trading sessions, Bank Nifty has remained range-bound, oscillating within a band of approximately 1075 points. According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, "The current technical setup continues to indicate a consolidation phase, with key momentum indicators and oscillators pointing towards a sideways market structure."
Shah added, "Going forward, the 57900-58000 zone is likely to act as an immediate resistance area for the index. On the downside, the 57000-56900 zone remains an important support."
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