Trend bullish for Nifty50, Bank Nifty indices; buy near support levels

The Nifty Index, presently trading at 19,646.05, is displaying a bullish trend on charts. Despite the recent weakness, the index has managed to find support near the 20-day Exponential Moving Average (20DEMA) at 19,575. This support level is crucial for traders to monitor, as a close below it could trigger further correction in the near term, potentially leading the index to test the next support level at 19,200. On the upside, if the index successfully trades and closes above the level of 19,900, it may signal a continuation of the bullish trend, potentially opening doors for further gains towards the resistance level at 20,180.

Given the prevailing bullish sentiment, the most prudent trading strategy would be to strategically buy near the identified support levels. Investors can capitalize on potential price rebounds from these support zones, which offer attractive entry points. By adopting this approach, traders can maximize their gains in line with the upward trend.

The Nifty Bank Index, currently trading at 45,468.10, is exhibiting a bullish trend on charts. A robust support level is anticipated at 45,236.00. In case the index trades below this support, the next support levels to watch for are 44,936 and 44,760. Notably, a sharp support lies at 44,100, signaling an oversold zone for both near and short term.

Traders and investors should take note that around the 44,100 level, the index becomes an attractive “must buy” zone for investors given the bullish trend on the charts. The recommended trading strategy for both near and short term would be to buy on dips near the identified support levels. Capitalizing on potential price rebounds from these support zones would maximize gains while aligning with the upward trend.

On the higher side, resistance is expected around 45,900 and 46,375. A close above 46,375 could lead to further gains, with the next resistance seen around 47,200. Staying attentive to the index’s performance and closely monitoring support and resistance levels will enable traders and investors to make well-informed decisions. Being cautious of oversold conditions can enhance risk management strategies and overall trading success in the Nifty Bank Index.

Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He doesn’t hold any positions in the indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security.