Nifty Sees Sudden Decline to 24,250: Market Outlook and Key Trading Levels in Focus

Indian Stock Market Sees Volatile Trading

The Benchmark index Nifty experienced a strong rejection at the 24,250 level on May 6, following a gap-up opening. Analysts have stated that this level must be decisively breached by the Nifty for further strength in the markets.

As of 12:26 pm, the Sensex was down 22.16 points or 0.03 percent at 76,995.63, while the Nifty was up 24.85 points or 0.10 percent at 24,057.65. The number of advancing shares was 2247, declining shares was 1425, and unchanged shares was 178.

Market analysts believe that the Nifty remains confined within the range of 23,750–24,250. As long as it sustains below the resistance level, a cautious stance persists, making sell-on-rise the preferred strategy. A decisive breakout above this level will be key for the next directional move.

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Key Levels

Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, noted that the index's current range is between 23,750–24,250 and that a sustained breach above the resistance level is necessary for further market strength.

Anand James, Chief Market Strategist at Geojit Investments Limited, stated that the threat of 23780-560 remains, but yesterday's long lower wicked candle indicates a potential for a positive open today. A direct rise above 24334, last week's peak, will confirm upside, while floating above 24150 could be a positive sign.

Rajesh Palviya, Head of Research at Axis Direct, emphasized that a sustained daily close above 24,250 is needed to extend the rally towards 24350-24450. If 23,900 is not held, the index could test the 23,800–23,700 zone.

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Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, highlighted key levels for the Nifty, including immediate support at 24,000-23,900, strong support at 23,800-23,750, and resistance at 24,260-24,350. A sustained move above 24,600, which coincides with the recent swing high and the 100-day EMA, would be crucial to confirm the next leg of upward momentum.