Market Update

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SUPPORT: 23500-23000 RESISTANCE: 24300-24500

Nifty has technically completed re-testing and correction cycle for the recent fall from 26277 to 22182, by bouncing to 24400, a 50% retracement level was at 24260.

While market remains upbeat due to domestic election, market is pricing in NDA victory in the West Bengal for the first time, while US President keeps making absurd claims of worst is behind, which Iranian side categorically denies, and stated Strait of Hormuz remains closed with US firing on Iranian oil vessel has escalated the situation.

Technically this bounce is opportunity to exit weak long positions in stocks, for index traders, one can take contra short bet on Nifty with stoploss of 24550 at opening level of 24390-24450 levels, or wait for the previous hour’s low is breached.

On the daily range unless Nifty breaches 24000 level market may remain range bound, however OI buildup suggests PUT writers have moved to 23000-23500 strikes, suggesting probability of range expansion on the downside.

While on the upside there is no easy target or levels, 61.8% retracement levels is seen at 24752, which may act as a major hurdle in case news based positive momentum during the week above 24500.

Tradzo maintains cautious view and Nifty target of 19000-17000 for 2026 as per Global Macro-economic headwinds led Recessionary-Tail Risk and advice to reduce weak long positions in overvalued stocks based on trailing valuations and ignoring over-estimated forward ratios.

Read full of Analysis of Nifty50 here for broader view.