Bank Nifty Analysis: Can It Break Through 51,800 Resistance?

Here’s a comprehensive overview of the trading outlook for Nifty 50 and Bank Nifty based on recent analysis:

Nifty 50 Outlook

• Current Status: The Nifty 50 closed at 24,964, reflecting a volatile session with a decline of 34 points. The index has struggled to decisively break above the 50-day EMA (around 25,000), which has served as a significant resistance level.
• Key Levels:
  • Resistance:
    • 25,200
    • 25,300
  • Support:
    • 24,800
    • 24,700
• Analyst Strategies:
  • Osho Krishan (Angel One):
    • Outlook: A breakthrough above the 50-day EMA could accelerate bullish momentum.
    • Strategy: Buy on dips near 24,850-24,800. Aim to book profits near 25,200-25,250 with a stop-loss at 24,700.
  • Nandish Shah (HDFC Securities):
    • Outlook: The short-term trend is bearish with momentum indicators indicating weakness.
    • Strategy: Sell below 24,756 with a stop-loss at 25,000, targeting 24,500.
  • Rajesh Palviya (Axis Securities):
    • Outlook: The Nifty has formed a small bearish candle indicating indecisiveness.
    • Strategy: Buy around 24,900 with a stop-loss at 24,800, targeting 25,150.

Bank Nifty Outlook

• Current Status: The Bank Nifty closed at 51,172, declining by 359 points. It is facing resistance in the 51,500-51,800 zone, which is critical for further upward movement.
• Key Levels:
  • Resistance:
    • 51,500
    • 52,000
  • Support:
    • 50,700
    • 50,500
• Analyst Strategies:
  • Osho Krishan (Angel One):
    • Outlook: The banking index appears to have halted its bull run, with resistance at 51,500-52,000.
    • Strategy: Buy around 50,800-50,700 targeting 52,000, with a stop-loss at 50,450.
  • Nandish Shah (HDFC Securities):
    • Outlook: The short-term trend remains bearish, with the index below key EMAs.
    • Strategy: Sell below 50,900 with a stop-loss at 51,200, targeting 50,500 and 50,190.
  • Rajesh Palviya (Axis Securities):
    • Outlook: A bearish candle on the weekly chart suggests potential selling pressure if it breaks below key support levels.
    • Strategy: Sell near 51,300 with a stop-loss at 51,500, targeting 50,800.

Market Sentiment

• The Nifty 50’s ability to reclaim the 50-day DEMA is critical for bullish sentiment, while the Bank Nifty’s sustainability above the 51,500 level is crucial for maintaining upward momentum. The analysts indicate a mixed bias for both indices, with key support and resistance levels to watch closely.

Conclusion

Investors should monitor these key levels and consider the varying strategies from experts. Always conduct thorough research or consult with certified financial experts before making investment decisions.

Disclaimer

The views and investment tips expressed by analysts are their own and not necessarily those of Moneycontrol.com. Users are advised to consult certified experts before making any investment decisions.