Nifty, Bank Nifty: Wait for confirmed breakout from trading range

According to Ravi Nathani, an independent technical analyst, the Nifty is moving in a trading band of 21,650 - 22,000.

Tactical Approaches for Nifty Bank and Nifty 50 Indices: Await Breakouts for Strategic Trading

Nifty 50 Index

The Nifty 50 Index, currently at 21,853.80, faces a notable resistance zone around 22,200. Should the index breach this level, a near-term correction on the charts becomes plausible.

On the downside, breaking below 21,650 could trigger a corrective phase, with support levels at 21,200 and 20,800. The most prudent trading strategy in this scenario is to wait for these critical levels to be breached before initiating trades in the direction of the violation.

This approach ensures a more informed and strategic entry into the market, aligning with the confirmed trend. Investors are advised to closely monitor the levels of 22,200 and 21,650 as key points of interest for potential shifts in market dynamics.

 

Nifty Bank Index 

As the Nifty Bank Index hovers at 45,970.95, a range-bound scenario unfolds on the charts, delineated by 46,825 on the upside and 44,950 on the downside. A decisive close above or below this range is poised to act as a directional trigger for the market.

In the event of an upward violation at 46,825, resistance levels at 47,475, 47,860, and 48,150 become pivotal. Conversely, a breach below 44,950 signals potential bearish undertones, with support levels at 44,700, 44,430, and 43,800 emerging on the charts.

The recommended trading strategy is to exercise patience and wait for a clear breakout on the charts, ensuring a strategic entry aligned with the confirmed market direction.

In conclusion, the Nifty Bank and Nifty 50 Indices present traders with distinct yet interrelated scenarios. The range-bound nature of the Nifty Bank Index calls for patience, awaiting a breakout for decisive trading.

On the other hand, the Nifty 50 Index prompts a vigilant approach, with a keen eye on critical resistance and support levels for strategic entries. As always, adaptability and a disciplined approach are paramount in navigating the dynamic landscape of financial markets.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).