Nifty 50 (23,696):
Key Levels:
- Resistance Levels (Pivot Points):
1. 23,776*(Immediate Resistance)
2. 23,806 (Strong Resistance)
3. 23,855 (Major Resistance)
- Support Levels (Pivot Points):
1. 23,680 (Immediate Support)
2. 23,650(Strong Support)
3. 23,601(Major Support)
Technical Analysis:
- Candlestick Pattern: The Nifty 50 formed a bearish candlestickon the daily charts, indicating potential profit-booking or short-term weakness. However, the **higher highs and higher low formation remains intact, suggesting the overall uptrend is still valid.
- Moving Averages: The index is trading above both the 50-day EMA and 200-day EMA, which is a bullish signal and confirms the long-term uptrend.
- Momentum Indicators:
- RSI (55.85):The RSI is in the upper band but not in the overbought zone, indicating room for further upside.
- MACD: The MACD is inching toward the zero line, suggesting a potential consolidation or minor pullback before resuming the uptrend.
Market Sentiment:
- The Nifty 50 is in a bullish trend but faces short-term resistance near 23,776–23,855. A break above 23,855 could lead to a fresh rally, while a break below 23,601may trigger a deeper correction.
Bank Nifty (50,343):
Key Levels:
- Resistance Levels (Pivot Points):
1. 50,477 (Immediate Resistance)
2. 50,550 (Strong Resistance)
3. 50,667(Major Resistance)
- Support Levels (Pivot Points):
1. 50,243 (Immediate Support)
2. 50,171(Strong Support)
3. 50,054 (Major Support)
- Fibonacci Retracement Levels:
- Resistance:51,152, 51,937
- Support:47,875, 46,078
Technical Analysis:
- Candlestick Pattern: The Bank Nifty formed a small bearish candle with upper and lower shadows, resembling a high wave pattern, which indicates volatility and indecision among traders.
- Trend Formation: The higher tops and higher bottoms formation remains intact, confirming the overall uptrend. The index is also trading above the 50-day EMAand 200-day EMA, which is a bullish signal.
- Momentum Indicators:
- RSI: The RSI is maintaining a positive bias, indicating strength in the current trend.
- MACD:*lThe MACD is moving up toward the zero line, suggesting potential bullish momentum in the near term.
Market Sentiment:
- The Bank Nifty is outperforming the Nifty 50, but it faces resistance near 50,477–50,667. A break above 50,667could lead to a strong rally toward 51,152 (Fibonacci resistance). On the downside, a break below 50,054may trigger a correction toward 47,875 (Fibonacci support).
Key Takeaways:
Nifty 50:
- Bullish Trend Intact: The Nifty 50 remains in an uptrend, supported by higher highs and higher lows, and trading above key moving averages.
- Short-Term Resistance: Immediate resistance is at 23,776, with strong resistance at 23,855. A break above this level could lead to a fresh rally.
- Support Levels:Immediate support is at 23,680, with strong support at 23,601. A break below this level may trigger a deeper correction.
Bank Nifty:
- Outperforming Nifty 50:*The Bank Nifty is showing relative strength, but it faces resistance at 50,477–50,667. A break above 50,667 could lead to a rally toward 51,152.
- Support Levels: Immediate support is at 50,243, with strong support at 50,054. A break below this level may lead to a correction toward 47,875.
Actionable Insights:
- For Nifty 50:
- Go long if the index sustains above 23,776 with a target of 23,855 and stop-loss below 23,680.
- Go short if the index breaks below 23,601 with a target of 23,550 and stop-loss above 23,680.
- For Bank Nifty:
- Go long if the index sustains above 50,477 with a target of 50,667*and stop-loss below 50,243.
- Go short if the index breaks below 50,054 with a target of 49,800and stop-loss above 50,171.
Anish J Parashar
Securities Analyst
Disclaimer:Content is for educational purposes only For investment purposes consult your financial advisor.
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