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Nifty ended Wednesday’s session with a gain of 58 points but saw the formation of a small negative candle with upper shadow on the daily chart to signal range-bound action at the crucial hurdle of around 23,400-23,500 levels.The overhead resistance of key Fibonacci extension, opening upside gap of 4th June, upward sloping resistance line are intact around 23,400-23,500 levels. As long as this hurdle is not taken out decisively on the upside, one can't rule out the possibility of a downward correction. Immediate support is at 23,200 levels and a move below this area is likely to trigger a quick selloff in the market, said Nagaraj Shetti of HDFC Securities.Open Interest (OI) data showed that on the call side, the highest OI was observed at 23,500 and 24,000 strike prices. On the put side, the highest OI was at the 23,200 strike price.What should traders do? Here’s what analysts said:Jatin Gedia, SharekhanOn daily charts, we can observe that Nifty has been broadly trading in the range of 23,450 – 23,200 for the last three trading sessions. The hourly momentum indicator has a negative crossover and thus the rallies are fizzling out at higher levels. The ideal strategy would be to buy on a dip around 23,150 – 23,100 where support in the form of the 40 hour moving average is placed. On the upside, 23,400 – 23,450 remains the target zone.Tejas Shah, JM Financial & BlinkXNifty is facing a lot of resilience around 23,340-350 levels on an immediate basis and we need to witness a decisive close above 23,350 levels for further strength in Nifty. Support for Nifty is now seen at 23,200 & 23,000 levels. On the higher side, immediate resistance is at 23,350 levels & the next resistance is at 23,500.Rupak De, LKP SecuritiesThe short-term trend remains positive as the index stayed above 23,300. In the near term, the index might continue consolidating within the 23,300-23,500 range. A decisive breakout above 23,500 could trigger a rally towards 23,800.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Federal Reserve policymakers may feel more confident that inflation is back on a downward path after a U.S. government report showed consumer prices did not rise at all in May, potentially paving the way for interest-rate cuts in coming months. U.S. central bankers, who wind up their meeting on Wednesday, are universally expected to make a decision to hold the policy rate in its current 5.25%-5.5% range. But the unexpectedly benign inflation report, which also showed underlying price pressures cooled to a level more consistent with the Fed's 2% inflation goal, could set them up for a rate cut as soon as September, and another one in December. "After three months of veering off-track, the disinflation bus is back on the road to 2%,"said Brian Jacobsen, chief economist at Annex Wealth Management. Short-term interest-rate futures are now pricing in nearly a three-to-one chance of a rate cut by September, up from only slightly better than a coin toss earlier in the day. Traders also added to bets on a second Fed rate cut by December, with rate-futures pricing reflecting a rising chance but still less-than-50% chance of a third rate cut by the end of the year.

The Index of Industrial Production (IIP) in India slowed to 5 per cent in April, a three month low, as against 5.4 per cent in March, revealed the data provided by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday. The IIP growth rate was recorded at 4.6 per cent in April 2023, the government said in a press release.The previous high of IIP was recorded at 11.9 per cent in October 2023, which slowed to 2.5 per cent in November, 4.2 per cent in December and 4.1 per cent in January 2024.As per the data, the growth rates of the three sectors in April 2024, Mining, Manufacturing and Electricity stood ate 6.7 percent, 3.9 percent and 10.2 percent year-on-year respectively."Within the manufacturing sector, the growth rate of the top three positive contributors to the growth of IIP for the month of April 2024 are – “Manufacture of basic metals” (8.1%), “Manufacture of coke and refined petroleum products” (4.9%), and “Manufacture of motor vehicles, trailers and semi-trailers” (11.4%)," MoSPI said.According to use-based classification, the capital goods segment grew by 3.1 per cent in April, but it expanded by 4.4 per cent in the same month of last year.The output of consumer durables grew by 9.8 per cent during April compared to a decline of 2.3 per cent in 2023.The output of non-durable consumer goods decreased by 2.4 per cent after rising by 11.4 per cent in April 2023.Goods related to infrastructure and construction saw a marginal growth of 8.0 per cent in April 2024, against a 13.4 per cent expansion YoY.The data also revealed that, in comparison to the same period last year, the output of primary goods increased by 7 per cent in April 2024 as against 1.9 per cent.The core sector makes up 40.27% of the Index of Industrial Production (IIP), making it a lead indicator of industrial activity.