Nifty in buy on dips mode; Bank Nifty key support seen at 43,300

According to Ravi Nathani, an independent technical analyst, the the ongoing correction has positioned the Nifty in close proximity to its support levels, at 19,200, 19,150, and 19,080.

Nifty 50 Index Analysis: Riding Short-Term Trends and Seizing Accumulation Opportunities

The Nifty 50 Index currently stands at 19,310.15, portraying an ongoing short-term upward trend on the charts. Within this context, the current correction phase assumes significance, warranting a closer examination.

This correction, when viewed through the lens of short-term charts, can be regarded as a healthy process. In fact, it presents an opportune moment for investors to consider accumulating the index and its constituents. The presence of a robust trend on these short-term charts further underscores this perspective.

Importantly, the ongoing correction has positioned the index in close proximity to its support levels, specifically at 19,200, 19,150, and 19,080. These levels emerge as prime accumulation points, particularly suited for those who adopt a swing trading approach or possess a keen opportunistic outlook.

 

Consequently, the recommended trading strategy for both near and short-term traders revolves around making strategic purchases during market dips, specifically near the aforementioned support prices. This approach aligns with the principle of acquiring assets when they are trading at comparatively lower levels. 

In summary, the analysis of the Nifty 50 Index illuminates the short-term upward trend that's currently underway. The ongoing correction, viewed in conjunction with strong short-term chart trends, offers a compelling accumulation opportunity. The index's proximity to support levels at 19,200, 19,150, and 19,080 underscores the tactical advantage of buying on market dips. This calculated strategy aligns well with the principles of swing trading and opportunistic investment.

Bank Nifty Index Analysis: Emerging from Correction and Embracing Positive Bias

The Bank Nifty Index is currently positioned at 43,851.05, and a comprehensive analysis of the near-term charts yields valuable insights. Observing the near-term charts, a notable trend is discernible – the index has seemingly completed its near-term correction phase.

With this correction potentially in the rearview, the index's trajectory is now poised for a consolidation phase, carrying an overall positive bias. It's important to note that, according to the chart analysis, any anticipation of a fresh round of selling hinges upon the index's closing below the 43,300 mark.

As long as this threshold remains unbreached, a favorable scenario is envisioned. Considering this outlook, traders can contemplate strategic moves. Buying at the current market price (CMP) or during market dips is a viable approach.

This strategy aligns with the expectation of a positive bias and potential consolidation. Setting a target or identifying resistance levels provides a clear trading roadmap. In this case, targets/resistance are envisaged around 45,000, 45,300, and 45,800. It's prudent to integrate a strict stoploss strategy as well, placed beneath the 43,300 levels. This protective measure is in line with the bullish perspective and ensures risk management.

In summary, the Bank Nifty Index analysis unveils an emerging landscape of transition. The conclusion of the near-term correction ushers in a consolidation phase with a favorable bias.

A cautious yet optimistic approach involves buying at the current market price or during dips, while closely monitoring the index's performance relative to the 43,300 levels. Targets and resistance levels provide traders with concrete goals, while a disciplined stoploss strategy further enhances risk management.

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