Markets continue to trade in a tight range, with the Nifty holding above key moving averages around the 24,100 zone. Despite the ongoing consolidation, the broader technical structure remains constructive.
ICICI Direct’s Dharmesh Shah, in an exclusive interview with ET Now, highlighted a crucial support band between 23,800 and 23,700, while maintaining an upside target of 24,500-24,800 for July.
The Nifty has been trading in a consolidative phase between its 20-day and 100-day moving averages. A strong support band is identified between 23,700 and 23,800.
Shah said, “the market has spent the last two trading sessions trading within a range. From a technical perspective, the 23,700-23,800 zone appears to be a strong support area, where the 20-day and 50-day moving averages are positioned. We expect this support to hold during the current corrective phase.”
“The Nifty is currently trading below its 100-day exponential moving average, which has acted as a key resistance level over the past few trading sessions. This resistance, around 24,000, is likely to be taken out eventually. Once that happens, the index could move towards the 24,500-24,800 range during July,” he added.
The expert remains positive for the month of July, anticipating the Nifty will break above current resistance and head toward targets of 24,500 to 24,800.
“In the near term, the market may continue consolidating within the 23,800-24,000 range. However, the broader target for July remains 24,500-24,800,” said Shah.
Shah said, “looking at the technical setup of the Nifty 50 constituents, there are some encouraging signs. Heavyweights such as HDFC Bank, Axis Bank, and SBI appear technically well-positioned for the coming week.”
The overall strategy for investors is to “buy on dips,” with any pullbacks toward the 23,600–23,800 range seen as attractive buying opportunities.
“There are a few important factors that could support further upside. Crude oil prices have retreated to levels seen before the Iran conflict, hovering around the $70 mark, which is positive for the Indian market. Bond yields have also corrected, while foreign institutional investor (FII) selling pressure appears to be easing compared with June. Overall, market conditions look more favourable in the coming days,” Shah said.
He added, “the overall outlook remains positive, and the preferred strategy is to buy on dips. Any decline towards the 23,600-23,800 zone should be viewed as a buying opportunity.”
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
