 "Market Outlook Today, Dec 17: Trading strategies for Nifty 50, Nifty Bank")
Nifty 50 Index: On the Verge of a Bullish Breakout
The Nifty 50 Index is currently positioned at a critical juncture, having closed near a key breakout level of 24,775. A decisive close above 24,775 would act as a strong trigger for renewed bullish momentum, signaling further upside in the near term. Should this breakout materialise, the next resistance levels to watch will be 25,125 and 25,625, presenting potential opportunities for traders to ride the upward trend.
On the flip side, a failure to sustain above the breakout level and a close below 24,480 would indicate a pullback in the ongoing bullish trend. In such a scenario, support is expected at 24,250 and 24,050, where buying interest is likely to emerge, preventing further downside.
Technical indicators remain broadly supportive of the bullish bias, with the index expected to outperform in the near term. Traders should consider the best strategy as accumulating positions near support levels, particularly around 24,250–24,050, to optimise risk-reward. Maintaining a strict stop-loss near 24,000 will safeguard against unexpected reversals.
In conclusion, the Nifty 50 Index remains well-placed to outperform, and traders should align their strategies accordingly, focusing on buying dips and capitalising on bullish momentum.
Nifty Bank Index: Awaiting Breakout for Clear Direction
The Nifty Bank Index is currently trading within a well-defined range of 53,750–53,350 on the charts, signaling a phase of near-term consolidation. A close above 53,750 would trigger fresh bullish momentum, leading the index towards its next resistance levels at 54,000, followed by 54,425 and 55,000. On the contrary, a breakdown below the lower range of 53,350 would indicate bearish pressure, with support levels emerging at 53,150, 52,775, and 52,050.
The technical setup suggests traders should adopt a wait-and-watch approach until a decisive breakout occurs on either side, as such a move would set the tone for clear trading opportunities. For safe traders, the best strategy would be to trade only after a confirmed breakout to capitalise on a directional trend. On the other hand, risky traders could look to sell on rise, particularly near resistance levels, with a strict stop-loss at 54,000, which coincides with the highest open interest build-up as per derivatives data.
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Technical indicators currently show indecision, further emphasising the need for caution. In conclusion, while the index remains range-bound, prudent traders should wait for a breakout, while aggressive traders can explore selling opportunities near resistance, keeping risk management a priority.
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Disclaimer: Ravi Nathani is an independent technical analyst. Views are his own. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. It should not be construed as a recommendation to purchase or sell such securities.