Nifty, Bank Nifty trendThe Nifty 50 staged a smart recovery from the day's low and turned green in late trade, forming a bullish candlestick pattern on the daily charts on July 5.
For Bank Nifty, key support is expected at the 52,000 mark, whereas resistance is placed at 53,000, experts said.
On Friday, the Nifty 50 rose 22 points to 24,324, whereas the Bank Nifty dropped 443 points to 52,660.
For the upcoming week, we anticipate Bank Nifty to trade in the range of 53,300-52,000 with a mixed bias.
Key Resistance: 53,200, 54,600Key Support: 51,900, 51,100Strategy: Buy Bank Nifty near 52,500, with a stop-loss of 51,500, and a target of 54,600.
Nifty, Bank Nifty trend
The Nifty 50 staged a smart recovery from the day's low and turned green in late trade, forming a bullish candlestick pattern on the daily charts on July 5. This signals no major concern for the current rally. The 24,200 level is expected to be good immediate support for the index, followed by 24,000, the crucial support. The 24,400-24,500 zone is likely to be a key resistance area. For Bank Nifty, key support is expected at the 52,000 mark, whereas resistance is placed at 53,000, experts said.
On Friday, the Nifty 50 rose 22 points to 24,324, whereas the Bank Nifty dropped 443 points to 52,660. For the week, the indices gained 1.3 percent and 0.61 percent, respectively. About 1,371 shares advanced, and 982 shares declined on the NSE.
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Nifty Outlook and Strategy
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
On the weekly chart, the Nifty 50 formed a long bullish candle with a higher high-low compared to the previous week, closing above last week's high and indicating a positive trend. The chart pattern suggests that if Nifty crosses and maintains above the 24,500 level, it could attract buying interest, pushing the index towards 24,600-24,800 levels. However, if the index falls below the 24,150 level, it could lead to selling pressure, taking the index towards 24,000-23,900. For the week, we anticipate Nifty to trade in the range of 24,800-23,900 with a positive bias. The weekly strength indicator RSI (Relative Strength Index) is trending upwards and quoting above its reference line, indicating a positive bias.
Key Resistance: 24,400, 24,550
Key Support: 24,200, 24,000
Strategy: Buy Nifty near 24,200, with a stop-loss of 24,100 and a target of 24,450-24,550 zone.
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Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Despite the Nifty remaining technically stretched, there are no indications of the vertical rally losing steam. It is crucial to approach this scenario with caution and avoid being swayed by the prevailing trend. As far as levels are concerned, 24,200 is likely to provide a cushion for any short-term blips, followed by robust support at the 24,000 mark for the upcoming week. On the higher end, we anticipate 24,400-24,500 to provide resilience for the index in the comparable period.
On the options front, the highest open interest concentration is at the 24,000 strike Put, while scattered piling among Call writers was seen from 24,500 to 24,700 strikes on an immediate basis.
Key Resistance: 24,400, 24,500
Key Support: 24,200, 24,000
Strategy: Sell on the rise of 24,450-24,500 and book profit near the 24,200-24,100, with a stop-loss at 24,560.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
The underlying trend of Nifty remains intact. A reasonable bullish candle has been formed on the daily chart after opening lower, with minor upper and lower shadows. Technically, this market action signals the formation of a bullish counterattack-type candle pattern, indicating a possible comeback of bulls after a small dip.
Previously, a similar type of formation on June 24 resulted in a sustainable upmove for the subsequent week. This is a positive indication. The underlying trend of Nifty continues to be positive. There is a possibility of an upside breakout hurdle around 24,400-24,500 levels in the next few sessions. Immediate support is at 24,170 levels.
Key Resistance: 24,450, 24,900
Key Support: 24,100, 23,750
Strategy: Buy Nifty near 24,300, with a stop-loss of 24,100 and a target of 24,900.
Bank Nifty - Outlook and Positioning
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Bank Nifty had a stable start to the week and experienced significant fluctuations throughout. On the weekly chart, the index formed a small bullish candle with shadows on both sides, reflecting uncertainty among traders about the market's direction.
Chart analysis suggests that if Bank Nifty surpasses and maintains levels above 52,800, it would likely prompt buying, potentially propelling the index towards 53,000-53,300. Conversely, a drop below the 52,500 level could trigger selling pressure, potentially driving the index towards 52,300-52,000. For the upcoming week, we anticipate Bank Nifty to trade in the range of 53,300-52,000 with a mixed bias. The weekly strength indicator RSI shows a positive bias as it is above its reference lines.
Key Resistance: 52,850, 53,100
Key Support: 52,350, 52,000
Strategy: Buy Bank Nifty near 52,350, with a stop-loss of 52,100 and a target of 52,700-52,850.
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Bank Nifty lacked conviction and momentum on the upside. This underscores the stiffness and hesitation of the index at elevated levels. Going forward, given the robust rally in the past few weeks and the presence of key technical indicators in the overbought zone, a sustained consolidation in the upcoming few sessions is possible. Additionally, the upcoming earnings season, with key banking heavyweight results scheduled in the coming days, is likely to dictate the future course of the index.
On the options front, the highest open interest concentration is at 52,500, 52,000 strikes Put, suggesting a strong support base.
Key Resistance: 53,400, 53,500
Key Support: 52,200, 52,000
Strategy: Sell on the rise of 53,200-53,300 and book profit near 52,200, with a stop-loss of 53,600.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
Bank Nifty continued with upside momentum for this week. Though it reacted down from the hurdle of 53,200 levels this week, there is a possibility of an upside bounce in the near term. The bullish chart pattern of higher tops and bottoms is intact. Immediate support is at 52,000-51,900 levels.
Key Resistance: 53,200, 54,600
Key Support: 51,900, 51,100
Strategy: Buy Bank Nifty near 52,500, with a stop-loss of 51,500, and a target of 54,600.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
