Trading Plan: Will Nifty, Bank Nifty Consolidate Before Another Upmove?

Historical Context

The Nifty 50 and Bank Nifty indices are crucial benchmarks in the Indian stock market, representing the performance of the top 50 companies and major banking institutions, respectively. Historically, these indices have been indicators of market sentiment and economic health. The Nifty 50 was launched in 1996 by the National Stock Exchange (NSE) of India, while the Bank Nifty was introduced in 2000. Both indices have seen significant growth, reflecting India’s economic development and the increasing participation of retail and institutional investors.

Nifty, Bank Nifty Trading Strategy

Despite attempts by bears to exert pressure, bulls maintained a stronger position, leading to the formation of a bearish candlestick pattern. On July 4, the Nifty 50 continued its higher tops-higher bottoms formation. The index may face consolidation with resistance at 24,400-24,500 and immediate support at 24,200. For Bank Nifty, 53,000 remains a crucial level for further uptrend, with support at 52,500.

On Thursday, the Nifty 50 reached 24,400 for the first time, closing 16 points higher at 24,302, while Bank Nifty hit a new all-time high of 53,104, up 14.5 points. The NSE saw 1,276 shares advance and 1,073 shares decline.

Nifty Outlook and Strategy

Deven Mehata, Equity Research Analyst at Choice Broking:

• Key Resistance: 24,400, 24,600
• Key Support: 24,150, 24,000
• Strategy: Buy on dips near 24,150 for targets of 24,400 and 24,600, with a stop-loss at 24,000 on a closing basis.

Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services:

• Key Resistance: 24,500, 24,600
• Key Support: 24,150, 23,950
• Strategy: Buy on decline with support at 23,950 for an upside target of 24,600.

Mitesh Karwa, Research Analyst at Bonanza Portfolio:

• Key Resistance: 24,400, 24,550
• Key Support: 23,950, 24,100
• Strategy: Buy near 24,250 with a stop-loss at 24,150 for a target of 24,450.

Bank Nifty - Outlook and Positioning

Deven Mehata, Equity Research Analyst at Choice Broking:

• Key Resistance: 53,350, 53,700
• Key Support: 52,800, 52,500
• Strategy: Buy on dips near 52,800 for targets of 53,350 and 53,700, with a stop-loss at 52,500 on a closing basis.

Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services:

• Key Resistance: 53,357, 53,750
• Key Support: 52,750, 52,500
• Strategy: Buy on decline with support at 52,500 for an upside target of 53,750.

Mitesh Karwa, Research Analyst at Bonanza Portfolio:

• Key Resistance: 53,500, 53,750
• Key Support: 52,150, 51,900
• Strategy: Buy on dips till 52,500 for a target of 53,500.

Summary

• Nifty 50:

  • Resistance Levels: 24,400, 24,600
  • Support Levels: 24,150, 24,000
  • Strategy: Buy on dips near 24,150 for targets of 24,400 and 24,600, with a stop-loss at 24,000.

• Bank Nifty:

  • Resistance Levels: 53,350, 53,700
  • Support Levels: 52,800, 52,500
  • Strategy: Buy on dips near 52,800 for targets of 53,350 and 53,700, with a stop-loss at 52,500.

• Market Sentiment: Bullish, with cooling volatility and positive technical indicators (EMAs, RSI).

• Investment Advice: Consult certified experts before making investment decisions.