Experts are still hopeful for 24,500, the immediate resistance level, considering the Nifty 50 consistently holds 24,200 as support.
The Bank Nifty is expected to continue consolidating, with immediate support at 52,000 and resistance at 52,500, experts said.
On Thursday, the Nifty 50 declined 8.5 points, or 0.03 percent, to 24,316, while the Bank Nifty gained 81 points, or 0.16 percent, to 52,271.
Investors and traders should carefully observe the price activity around the 52,500 resistance level, as a sustained breach could lead to further upside momentum.
Key Resistance: 52,500, 52,750Key Support: 52,000, 51,750Strategy: Buy on decline with support at 51,750 for a target towards 52,750 levels.
Nifty, Bank Nifty Trend
The market recouped most of its losses from the day's lows and closed a range-bound session marginally lower on July 11, forming a bearish candlestick pattern with a lower shadow on the daily timeframe. Experts are still hopeful for 24,500, the immediate resistance level, considering the Nifty 50 consistently holds 24,200 as support. The Bank Nifty is expected to continue consolidating, with immediate support at 52,000 and resistance at 52,500, experts said.
On Thursday, the Nifty 50 declined 8.5 points, or 0.03 percent, to 24,316, while the Bank Nifty gained 81 points, or 0.16 percent, to 52,271. About 1,403 shares declined, and 924 shares advanced on the NSE.
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Nifty Outlook and Strategy
Deven Mehata, Equity Research Analyst at Choice Broking
The Nifty Index has formed an inside candle on the daily chart, indicating indecision for the coming days. On the downside, Nifty has strong support near 24,200 levels. If the index fails to hold this support, a further correction towards 24,000 levels is likely. On the upside, Nifty faces strong resistance near 24,450, close to its all-time high. A close above 24,450 could propel Nifty towards 24,600 levels.
Key Resistance: 24,450, 24,600
Key Support: 24,200, 24,100
Strategy: Buy on dips near 24,200 levels for a target of 24,450 and 24,600 levels, with a stop-loss at 24,100 on a closing basis.
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Chandan Taparia, Head - Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services
The Nifty index has been stuck in a broader trading range of 24,150 to 24,450 levels for the last seven sessions. It witnessed sustained buying interest on any small declines, but follow-up is missing at new lifetime high zones. It has been forming a bearish candle on the daily scale but with a long lower shadow, indicating declines are being bought and the market is absorbing the supply of new high zones. Now it has to continue to hold above the 24,150 zone to extend the move towards 24,750, whereas supports are placed at 24,150 and then 24,000 zones.
On the options front, the maximum Call open interest is at the 24,500 and then 24,300 strikes, while maximum Put open interest is at the 24,000 and then 24,300 strikes. Call writing is at the 24,300 and then 24,400 strikes, while Put writing is at the 24,300 and then 24,200 strikes. Option data suggests a broader trading range between 24,000 to 24,600 levels, with an immediate range between 24,200 to 24,400 levels.
Key Resistance: 24,750, 25,000
Key Support: 24,150, 24,000
Strategy: Buy on decline with support at 24,000 for a target towards 24,750 and 25,000 levels.
Kunal Kamble, Senior Technical Research Analyst at Bonanza Portfolio
The Nifty 50 has found support at the 50 DEMA (24,212). As long as Nifty remains below the 24,500 mark, we anticipate the market to correct towards 24,000.
Key Resistance: 24,500, 24,700
Key Support: 24,200, 24,000
Strategy: Deploy a Bear Call Spread. Sell the 24,500 strike call and buy the 24,600 strike call.
A Bear Call Spread involves selling and buying Call options of higher strikes with the same expiry date.
Bank Nifty - Outlook and Positioning
Deven Mehata, Equity Research Analyst at Choice Broking
The Bank Nifty has shown a decline during the last two trading sessions but has recovered smartly from the solid support of 51,750, which is also close to its 20-day moving average. The index successfully ended over 52,200, suggesting optimistic sentiment. On the upside, Bank Nifty confronts slight resistance around the 52,500 mark. If the index can close over this barrier, it has the potential to rise to the target of 53,000 levels. Thursday's close over 52,200 confirms the optimistic attitude in the Bank Nifty. A close over 52,500 could spark fresh buying interest, bringing the index closer to the key milestone of 52,800. Investors and traders should carefully observe the price activity around the 52,500 resistance level, as a sustained breach could lead to further upside momentum.
Key Resistance: 52,500, 52,800
Key Support: 52,000, 51,750
Strategy: Buy on dips near the 52,000 level for a target of 52,500 and 52,800 levels, with a stop-loss of 51,750 on a closing basis.
Chandan Taparia, Head - Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services
Bank Nifty has been stuck in a broader range, showing some underperformance compared to the Nifty index. It has been making lower highs over the last five trading sessions, and resistances are shifting lower. It formed a small-bodied candle with a longer lower shadow, indicating support-based buying. The index took support at its 20 DEMA. Now it has to continue to hold above the 52,000 level for an up move towards 52,500 and then 52,750 levels, while a hold below the same could see some weakness towards 51,750 and then 51,500 levels.
Key Resistance: 52,500, 52,750
Key Support: 52,000, 51,750
Strategy: Buy on decline with support at 51,750 for a target towards 52,750 levels.
Kunal Kamble, Senior Technical Research Analyst at Bonanza Portfolio
It is anticipated that there will be a move towards the 52,700 level. As long as Bank Nifty trades below the 53,200 level, any upward movement towards the 53,000 level should be viewed as an opportunity to sell.
Key Resistance: 52,750, 53,400
Key Support: 51,800, 51,350
Strategy: Sell on rally
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
