The Nifty 50 declined 66 points or 0.3 percent to 23,501, while the Bank Nifty slipped 122 points or 0.24 percent to 51,661 on Friday.
Nifty continues to remain in an uptrend in the medium term.
Bank Nifty - Outlook and PositioningVinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC SecuritiesBank Nifty ended the week with more than a 3 percent gain, closing at 51,661.
Bank Nifty is trading above the 20, 50, 100, and 200-day SMAs, which are important short-term moving averages, indicating a positive bias in the short to medium term.
Bank Nifty continues to remain in an uptrend in the medium term.
Market Trend
The market erased the previous day's gains and closed lower after hitting the upper end of the rising channel on June 21. The Nifty 50 defended 23,400 at close. If it breaks the same, the next support area to watch is 23,300-23,200, whereas 23,650 is crucial for further upside. The Bank Nifty is likely to take support at 51,000 in case of further decline and face resistance at the 52,000 mark on the higher side, experts said.
The Nifty 50 declined 66 points or 0.3 percent to 23,501, while the Bank Nifty slipped 122 points or 0.24 percent to 51,661 on Friday. For the week, the indices gained 36 points and 1,659 points, respectively. About 1,265 shares declined, and 1,028 shares advanced on the NSE.
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Nifty Outlook and Strategy
Vinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC Securities
Nifty continued to consolidate for the entire week and remained in the narrow range of 23,667-23,400. Nifty made an all-time high of 23,667 during the last session of the week. Nifty is currently placed above its 5, 10, and 20 DEMA (Day Exponential Moving Average), indicating the continuation of a primary uptrend. The band of 23,200-23,300 is expected to act as a strong support. Resistances for Nifty are seen at 23,824 and 24,125, which are 123.6 percent and 138.2 percent Fibonacci retracement levels of the entire fall registered from 23,338 (Top of June 3) to 21,281 (Bottom of June 4).
Key Resistance: 23,824, 24,125
Key Supports: 23,338, 23,200
Strategy: Buy Nifty above 23,670, with a stop-loss of 23,300 and a target of 24,125
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Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
On the weekly chart, the Nifty 50 has formed a "Doji" candlestick formation at the upper band of the rising channel, indicating indecisiveness among market participants regarding the direction. The chart pattern suggests that if Nifty crosses and sustains above the 23,700 level, it would witness buying, leading the index towards 23,800-24,000 levels. However, if the index breaks below the 23,300 level, it will witness selling, taking the index towards 23,200-23,000. On the daily chart, Nifty sustaining above its 20, 50, 100, and 200-day SMAs (Simple Moving Averages) indicates a positive bias in the medium term. Nifty continues to remain in an uptrend in the medium term. Hence, 'buying on dips' continues to be our preferred strategy.
The weekly strength indicator RSI (Relative Strength Index) is moving upwards and quoting above its reference line, indicating a positive bias. However, the daily RSI turns flat, indicating lacklustre momentum in the short term.
Key Resistance: 23,600, 23,700
Key Support: 23,400, 23,300
Strategy: Buy Nifty near 23,400 with a stop-loss of 23,300 and a target of 23,600, 23,700.
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
From a technical perspective, the small-bodied candle formations suggest that the bulls may be nearing their limit and could be awaiting an external trigger to sustain their momentum.
On the options front, the highest open interest concentration is at the 23,500 and 23,400 strikes Put, while scattered piling among Call writers was seen from 23,500 to 23,700 strikes on an immediate basis.
Key Resistance: 23,650, 23,700
Key Support: 23,400, 23,200, 23100
Strategy: Buy on dips to 23,400, with a stop-loss of 23,280 and book profit near the resistance zone of 23,700.
Bank Nifty - Outlook and Positioning
Vinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC Securities
Bank Nifty ended the week with more than a 3 percent gain, closing at 51,661. It registered a fresh all-time high at 51,957 during the week. Private sector banks led the rally in the banking index. Resistances for Bank Nifty are seen at 52,326 and 53,064, which are 123.6 percent and 138.2 percent Fibonacci retracement levels of the entire fall registered from 51,133 (Top of June 3) to 46,077 (Bottom of June 4).
Key Resistance: 52,326, 53,064
Key Support: 51,133, 50,230
Strategy: Buy Bank Nifty above 51,960, with a stop-loss of 51,250 and a target of 53,064.
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
The chart pattern suggests that if Bank Nifty crosses and sustains above the 51,800 level, it would witness buying, leading the index towards 52,000-52,200 levels. However, if the index breaks below the 51,500 level, it will witness selling, taking the index towards 51,300-51,000. Bank Nifty is trading above the 20, 50, 100, and 200-day SMAs, which are important short-term moving averages, indicating a positive bias in the short to medium term. Bank Nifty continues to remain in an uptrend in the medium term. Hence, 'buying on dips' continues to be our preferred strategy.
The weekly strength indicator RSI is above its respective reference lines, indicating a positive bias.
Key Resistance: 52,000, 52,400
Key Support: 51,400, 51,200
Strategy: Buy Bank Nifty near 51,400 with a stop-loss of 51,200 and a target of 51,800, 52,000.
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
The outlook remains buoyant, and the Bank Nifty is likely to climb higher in the coming days. On the options front, the highest open interest concentration is at the 51,000 strike Put, suggesting a strong support base.
Key Resistance: 52,000
Key Support: 51,100, 50,900
Strategy: Buy on dips to 51,000 with a stop-loss at 50,500 and book profit near 52,000.
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