Nifty 50 Support and Resistance Levels (04/01/2024)

3 Jan 2024

### Nifty 50 Support and Resistance Levels (04/01/2024):

#### Support Levels:
1. **Support Level 1:** 21,500
2. **Support Level 2:** 21,450
3. **Support Level 3:** 21,300

These support levels represent crucial areas where Nifty 50 might experience buying interest and potential reversals as the market undergoes a downtrend.

#### Upside Resistance Levels:
1. **Resistance Level 1:** 21,700
- This level could act as the initial barrier for any potential upward movement.

2. **Resistance Level 2:** 21,800
- 21,800 is considered a significant resistance point. Breaking above this level might be challenging in a downtrend scenario.

### Technical Analysis Insights:

- **Support Zones:** 21,500, 21,450, and 21,300 are critical areas where buying interest might strengthen, potentially leading to a reversal or a temporary halt in the ongoing downtrend.

- **Resistance Zones:** 21,700 and 21,800 are anticipated to be key levels where selling pressure might intensify, limiting immediate upward movements during the downtrend.

- **Downtrend Caution:** Nifty 50 seems to be in a downtrend, thus traders should be cautious. The presence of multiple support zones indicates potential areas where buyers might step in, but breaching these zones might lead to further downside.