Nifty set to gradually move higher to 24500 or is it dead cat bounce?

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Support levels: 24180-24000 Resistance levels: 24300-24500

The market closing above 24200 on Thursday is a good sign, despite that it remain corrective in nature. Above 24300 corrective rally may extend to 24500 levels, while on the downside below 24180 we may se an attempt for 24000 next week.

Today market may remain choppy between 24200-24300 in the 1st half, later in the day a successful breach of 24300 may take market higher to 24400 level. We remain skeptical around 24400-24500 area and recommend to avoid aggressive overnight positions.

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Consolidation range post the fall from the peak of 26341 to 22182, has now narrowed to the 24800-23900 range. At 24752 nifty has completed 61.8% retracement for the entire fall and now breaching below the trend-line support of 23900 with a confirmation below 23800 may signal resumption of down trend to 22500-22000 level in the coming month.

The market may see a tug of war between bulls & bears and may act as trend deciding factor between psychological support of 24000 and closing swing low of 23767.

Crude supply is resulting into urea and nitrogen fertiliser shortages which may food security isssues for many countries if not resolved sooner. While risk of AI Stocks & startups collapsing is increasing with de-dollarisation and US hegemony, such things takes time to play out and may extend or develop differently so understanding the developments may help you drive through it.

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