 "Nifty trapped in 19,300-19,800 range; Bias posiitve Bank Nifty above 43,600")
Nifty 50: Consolidation Amidst Volatility
The Nifty 50 index stands at 19,653.50, showcasing a short-term bullish trend, but a closer look reveals an impending consolidation phase. Post a corrective dip, the index is expected to move within the confines of 19,800 to 19,300. Any closure beyond these limits will act as a pivotal trigger for market momentum.
Technical indicators, including MACD and near-term EMA's, display a flat trajectory, indicating a range-bound market for the foreseeable future.
Traders are presented with a strategic dilemma: either await a decisive breakout or opt for a riskier approach by shorting near the upper consolidation boundary and covering positions near the lower edge.
A breakout above 19,800 could signify the emergence of resistance at 20,036 and 20,125. Conversely, if the index breaches the lower limit at 19,300, the next support zones are anticipated around 19,125 and 18,925.
In these uncertain times, vigilance and adaptability are paramount. Traders must carefully observe market movements, ready to pounce on a clear breakout or implement calculated short strategies within the consolidation range.
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Nifty Bank Index: Riding the Range Amidst Volatility
The Nifty Bank Index currently stands at 44,360.60, underlining a short-term bullish trend. This momentum is anticipated to hold ground unless the index dips below the 43,600 mark for an extended period.
In the near term, a modest rally could unfold, characterized by a range-bound movement oscillating between 44,800 and 43,850. This limited fluctuation comes as no surprise, considering the onset of the results season, typically heralding reduced market volatility.
Traders are presented with a choice: opportune buying near the lower boundary or strategic selling close to the upper limit. The index is poised to meander within this range for the next few sessions.
In anticipation of a breakout, prospective resistance points loom at 45,080, 45,380, 45,790, and 46,036, providing potential markers for profit-taking.
Conversely, underlying support is expected at 43,600, 42,900, and 41,900, safeguarding against substantial downturns. Navigating this phase demands meticulous attention to these levels, especially considering the potential market reactions prompted by upcoming corporate results.
As the market braces for potential gap-ups or gap-downs, traders must exercise careful analysis and swift decision-making to capitalize on emerging opportunities.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).