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Nifty

Nifty faced resistance near the upper end of the consolidation band at 23,400 and retreated towards the support zone around 23,000. Trend strength indicators remain in their respective negative zones, showing no signs of divergence or strength, while the Put-Call Ratio (PCR) has entered oversold territory, suggesting a potential relief rally. Options data highlights immediate support at 23,000 and 22,800, with resistance firm at 23,500 and a breakout possibility towards the 23,680-23,800 cluster if the 23,400 level is breached. The ongoing consolidation appears to be a short-term squeeze ahead of expansion. As the earnings season unfolds, heightened volatility is expected, warranting a cautious trading approach. In the near term, the index is likely to trade within a broad range of 22,800-23,800, with 23,500 acting as the midpoint. A long-short strategy remains prudent until the index decisively closes above 23,680, aligning with the 200-day exponential moving average.

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