The Indian stock market traded lower on Thursday, extending its losses for the fourth consecutive session, amid cautious sentiment triggered by the escalating US-Iran war and rising crude oil prices. The benchmark Sensex fell over 200 points, while the Nifty 50 slipped below the crucial 24,000 mark.
Markets came under pressure after the latest escalation pushed crude oil prices higher, with Brent crude rising above $95 a barrel. This has intensified concerns over inflation, monetary policy and the economic outlook for major oil-importing countries such as India.
The BSE Sensex fell 202.29 points, or 0.26%, to 76,552.76, while the NSE Nifty 50 declined 62.40 points, or 0.26%, to trade at 23,943.80. The Bank Nifty index underperformed the broader market, declining 0.92% to 56,629.90.
The Nifty 50 has been consolidating within a broad range and has now slipped below the psychologically important 24,000 level. Analysts expect the consolidation phase to continue in the absence of fresh triggers. However, a decisive breakout on either side of the range could determine the index’s next major directional move.
Nifty 50: Key support and resistance levels
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the Nifty 50 has been consolidating within the 23,785 – 24,531 range on the daily chart since June 15, reflecting a lack of clear directional momentum.
During this phase, the Relative Strength Index (RSI) made multiple attempts to move above the 60 mark but failed to sustain those gains, indicating that bullish momentum remained weak.
“Meanwhile, the DI- line has recently crossed above the DI+ line on the ADX indicator, suggesting that sellers are gradually gaining the upper hand. Despite the recent pullback from lower levels, the Nifty 50 index continues to trade below its key moving averages, keeping the short-term bias cautious,” Shah said.
From a technical perspective, Shah said the 20-day exponential moving average (EMA) zone of 24,070 – 24,100 is likely to act as immediate resistance for the Nifty 50 index. On the downside, the 23,800 – 23,750 zone remains a crucial support area.
“A decisive and sustained breach below this support zone could trigger an extension of the ongoing weakness and lead to further downside in the index,” he added.
Ruchit Jain, Head of Equity Technical Research, Wealth Management, at Motilal Oswal Financial Services, said the Nifty 50 is undergoing a short-term consolidation phase and has been trading within a range over the past few weeks.
“The immediate support for the Nifty 50 is placed around 23,800, while resistance is seen in the 24,200 – 24,250 zone. A breakout on either side of this range is required for a directional move,” Jain said.
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