Trading Plan: Will Nifty 50 hold above 20-DEMA, Bank Nifty take support at 59,000?

Nifty 50 and Bank Nifty Outlook: Experts Weigh In

The Nifty 50 and Bank Nifty have been experiencing a mixed trend, with the former holding onto the psychological 26,000 mark and the latter facing weakness after a recent rally.

Nifty 50 Outlook

• Immediate Support: 25,966–25,840 zone (20 EMA – low of last Wednesday’s long green candle)
• Key Resistance: 26,155, 26,216
• Key Support: 25,923, 25,843

Experts predict a rebound toward the record high if the index holds onto the crucial support zone, while a break below the 20 EMA could lead to a fall toward 25,840.

Expert Views

• Vinay Rajani, Senior Technical & Derivative Analyst at HDFC Securities: The Nifty has corrected this week after breaking the support of 26,124, with momentum readings declining, indicating loss of momentum.
• Arun Kumar Mantri, Founder of Mantri FinMart: The Nifty is undergoing tight consolidation, digesting short-term negativities, with price indicating exhaustion around key resistances.
• Preeti K Chabra, Founder of Trade Delta: Despite the decline, the Nifty 50 successfully held above the 26,000 mark, a key support zone, and continues to trade above the 20-day SMA (middle Bollinger Band) at 25,922.

Based on these expert views, the strategies for the Nifty 50 are:

• Sell Nifty Futures between 26,050–26,100, with a stop-loss of 26,155, targeting 25,923–25,843. (Vinay Rajani)
• Aggressive traders may go long on the Nifty 50 on minor dips, keeping a strict stop-loss placed below 25,860 on a closing basis for targets of 26,200 levels. (Arun Kumar Mantri)
• Consider buying Nifty Futures near 26,000, for a target of 26,157 followed by 26,250, with a stop-loss of 25,922. (Preeti K Chabra)

Bank Nifty Outlook

• Immediate Resistance: 59,657, 59,898
• Key Support: 59,166, 58,783

Experts predict a fall toward 58,783 if the Bank Nifty breaks its recent support of 59,523, while a bounce back could lead to an upward journey toward 59,650.

Expert Views

• Vinay Rajani, Senior Technical & Derivative Analyst at HDFC Securities: Bank Nifty has broken its recent support of 59,523 and now seems headed lower, with momentum indicators declining.
• Arun Kumar Mantri, Founder of Mantri FinMart: Bank Nifty has been the major catalyst behind the current bullish move in the broader markets, with price continuing to stay above the key moving averages.
• Preeti K Chabra, Founder of Trade Delta: Bank Nifty has witnessed profit booking over the last two sessions after hitting a fresh all-time high, but continues to hold above the key 61.8% Fibonacci retracement level at 58,984.

Based on these expert views, the strategies for the Bank Nifty are:

• Sell Bank Nifty Futures at around 59,348, with a stop-loss of 59,657, targeting 58,783. (Vinay Rajani)
• Short-term traders may opt to buy Bank Nifty Futures around the support zones of 59,000–59,100, keeping a stop-loss placed below 58,850 on the spot levels. (Arun Kumar Mantri)
• Buy Bank Nifty Futures near the cash reference level of 59,000 for an upside target of 59,650, while maintaining a stop-loss at 58,771. (Preeti K Chabra)

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.