Nifty, Bank Nifty Trading StrategyThe benchmark indices recorded a new closing high on June 25, after consolidation.
The Bank Nifty is expected to move towards 53,000 soon, given the prevailing optimism, with support at 51,800, according to experts.
On Tuesday, the Nifty 50 rallied 183.5 points, or 0.78 percent, to 23,721, while the Bank Nifty jumped 902 points, or 1.74 percent, to 52,606.
Bank Nifty - Outlook and PositioningAshish Kyal, CMT, Founder and CEO of Waves Strategy AdvisorsBank Nifty has continued to outperform and formed a strong bullish candle.
According to the 1.618 Fibonacci retracement, the Bank Nifty could reach 54,100 in the coming month.
Nifty, Bank Nifty Trading Strategy
The benchmark indices recorded a new closing high on June 25, after consolidation. The Nifty 50 formed a long bullish candlestick pattern on the daily charts and is likely to hit the 24,000 mark in the coming days, provided it holds 23,500 as support. The Bank Nifty is expected to move towards 53,000 soon, given the prevailing optimism, with support at 51,800, according to experts.
On Tuesday, the Nifty 50 rallied 183.5 points, or 0.78 percent, to 23,721, while the Bank Nifty jumped 902 points, or 1.74 percent, to 52,606. Despite the gains, market breadth was negative, with about 1,317 shares declining and 993 shares advancing on the NSE.
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Nifty Outlook and Strategy
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Nifty has given a positive breakout after 10 trading sessions, breaking above the hurdle of 23,560, which maintains an overall upside tone for targets of 23,880 and the Gann level of 24,103. From an Elliott wave perspective, prices appear to be moving up in the form of wave (v) of 3rd, and the short-term trend remains bullish.
Key Resistance: 24,100
Key Support: 23,550
Strategy: Long positions can be created on dips to 23,680 with a stop-loss at 23,550 and a target of 23,880 or higher levels.
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Riyank Arora, Technical Analyst at Mehta Equities
Nifty has surpassed its recent swing high of 23,664 and successfully closed above it. Major support is now placed at the 23,350 mark. On the upside, resistances are near 23,800 and 24,000 as the rally extends further. A buy-on-dips approach is suggested.
Key Resistance: 23,800, 24,000
Key Support: 23,550, 23,350
Strategy: Buy Nifty near 23,600 with a strict stop-loss at 23,500 for potential targets of 23,800 and 24,000.
Om Mehra, Technical Analyst, SAMCO Securities
Nifty has shown remarkable resilience by consistently closing higher over the past three weeks. The index has support from a rising trendline on the daily timeframe. Short-term sector rotation is evident and driving the Nifty higher. India VIX, the fear gauge, has returned to the 12-14 range, indicating that bulls remain comfortable.
Key Resistance: 23,950, 24,100
Key Support: 23,400, 23,200
Strategy: Traders can execute a Bull Call Spread Strategy by buying one lot of the 23,500 strike Call in the July monthly expiry and selling one lot of the 24,100 strike Call. The margin required for this strategy is around Rs 11,861. The maximum profit will be Rs 6,816, and the breakeven point would be 23,828. This strategy will lose money if the index remains below 23,843. If the loss on the total position exceeds Rs 5,000, one can exit this trade.
The Bull Call Spread is a type of options trading strategy that involves two call options. This type of strategy is used when the trader expects a moderate rise in the price of an underlying asset.
Bank Nifty - Outlook and Positioning
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Bank Nifty has continued to outperform and formed a strong bullish candle. The overall trend remains buy on dips as long as the support near 51,800 is intact. The upside channel resistance is near 53,800 levels. The short-term RSI (Relative Strength Index) is near 76, suggesting minor dips that can provide buying opportunities for a move to 53,800 or higher.
Key Resistance: 53,800
Key Support: 51,800
Strategy: Long positions can be created on dips to 52,300 with a stop-loss of 51,800 for a target of 53,000, followed by 53,800.
Riyank Arora, Technical Analyst at Mehta Equities
The Bank Nifty has successfully closed above its recent swing high of 51,957 and is heading towards its next overhead resistance mark of 53,000. Minor support is now placed around the 52,400 level, with the next major support near 52,000. The overall trend remains positive, with 53,000 likely to be seen soon.
Key Resistance: 53,000, 53,500
Key Support: 52,400, 52,000
Strategy: Buy Bank Nifty near the 52,400-52,500 zone with a strict stop-loss at 52,000 for potential targets of 53,000 and 53,500
Om Mehra, Technical Analyst, SAMCO Securities
The weekly RSI for Bank Nifty has remained impressively strong, sustaining at 72 levels. Heavyweight private banks and the Nifty Financial Services sector are leading in performance, while the Nifty PSU Bank Index is consolidating and showing signs of potentially joining the bullish trend. According to the 1.618 Fibonacci retracement, the Bank Nifty could reach 54,100 in the coming month.
Key Resistance: 53,500, 54,400
Key Support: 51,000, 50,000
Strategy: Any decline to between 51,500 and 51,700 represents a buying opportunity to reach the 54,000 target.
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