 "Bias for Nifty remains bullish; look to buy on dip, suggest charts")
Nifty 50 Index Bullish bias buy on dips or near support levels.
The current market price for the Nifty 50 Index is 19,731.80, and the near-term trend signals a bullish trajectory on the charts. A modest resistance is anticipated at 19,926, with a more substantial barrier lying between 20,064 and 20,110.
A positive breakout, or the activation of stop loss for short positions, would occur only if the index closes above 20,225. In such a scenario, the subsequent resistance target is expected at 20,550. The overall trend maintains a bullish stance on the charts. Hence, the recommended trading strategy for traders remains unchanged: to buy on dips or near support levels.
Anticipated support levels are projected around 19,464, 19,349, and 19,236. This strategy aligns with the prevailing bullish market sentiment, allowing traders to strategically position themselves and capitalize on potential upward movements while managing risks effectively.
In summary, the Nifty 50 Index presents a bullish outlook, and traders are advised to closely monitor the resistance levels for potential breakout opportunities. Buying near identified support levels enables traders to navigate the market with prudence and make well-informed decisions in response to evolving market dynamics.
Nifty Bank Index Buy the index with conditions applied in the form of Resistance and support
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The current market price for the Nifty Bank Index is 43,583.95, and the near-term outlook indicates that the index has closed very close to a crucial support level at 43,536. A close below this level could trigger some selling pressure, with the next support levels on the charts activated at 43,264, 42,981, and 42,600.
Given the recent sharp correction, a prudent trading strategy involves seeking opportunities to buy the index and its constituents at the specified support levels. Targets and resistance levels on the daily charts are identified at 44,700, 45,410, and 45,825.
The optimal trading strategy is contingent on whether the index breaks the last week's high of 44,421. If such a breakout occurs, positioning on the buy side with a target of 44,700, 45,410, and 45,825 is recommended.
Conversely, if the index breaks the support level of 43,536, a strategy is to wait for a small correction and accumulate the index near the support levels of 43,264, 42,981, and 42,600. A stop loss should be placed below 43,264 on a closing basis to manage risks effectively.
In summary, vigilance and adaptability are key in navigating the Nifty Bank Index. Traders are advised to closely monitor the support and resistance levels, adjusting their strategies based on market developments to optimize gains and minimize risks.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).