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Nifty 

The index continued its downward trajectory, breaching the crucial 23,600 retracement support zone on consecutive sessions. This development weakens the support base that has held as a demand zone for the past three weeks. Both trend strength indicators highlight the need for caution: the daily ADX is trending higher, signaling stronger momentum, while the RSI has been declining steadily since the start of the month, reflecting weakening relative strength. Option data suggests a downward shift in the trading range, now projected between 23,800 and 22,800, with a critical support zone near 23,300 for this week followed by 23000. Given the index's struggle to regain strength, it is prudent to avoid long positions unless the 24,260 resistance level is decisively breached. Traders should consider maintaining a long-short approach until a definitive short-covering signal propels the index beyond the 23,840 mark on a closing basis, aligning with the 20-day exponential moving average (20 DEMA). As the earnings season unfolds, volatility is likely to persist, necessitating a cautious stance for market participants.

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