TECHNICAL OUTLOOK

Indian equity indices slipped after an initial uptick owing to the terrorist attack in Kashmir, and the rise in geopolitical tensions.

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The resulting caution among investors overshadowed the otherwise supportive cues from positive FII inflows and gains in global markets

The Nifty made a low of 21,743 on 7th April, but has since staged a strong recovery, aided by gap-up openings that propelled it to a high of 24,365.40. As per Retracement Theory, the Nifty has now recovered 50% of its previous decline.

On the upside, the resistance zone lies between 24,400 and 24,550, and a decisive breakout above 24,540 could set the stage for a swift rally towards 25,200/26,000.

On the downside, key support is placed at 23,700-23,400 - on the weekly chart - and staying above this level keeps the overall outlook positive. However, a breach of this support zone may lead to further declines towards 22,700 or 22,400, whereas a bounce from this range could revive upward momentum.