Bank Nifty near lower-end of consolidation range; key support at 43,400

According to Ravi Nathani, an independent technical analyst, the Nifty 50 is seen consolidating in the 18,500 to 18,900 range.

Nifty 50 Index

The Nifty 50 Index is currently trading at a CMP (Current Market Price) of 18,665.50. The near-term trend for the index is expected to consolidate within a range. The consolidation range is between 18,900 and 18,500. A close above or below this range would add a trigger for further movement in that direction.

If the index manages to close above 18,900, it would indicate a super bullish sentiment, and the next resistance level to watch out for would be around 19,400. On the other hand, if the index closes below 18,500, it would signal a near-term downward trend, with support levels expected around 18,375 and 18,100.

Traders should keep these levels in mind and adjust their positions accordingly. As long as the index remains within this consolidation range, the recommended trading strategy would be to buy near support levels and sell near resistance levels. This strategy allows traders to take advantage of potential price movements within the range.

Nifty Bank Index

The Nifty Bank Index, is presently being traded at a Current Market Price (CMP) of 43,622.90. Through meticulous chart analysis, it can be observed that the index is currently confined within a specific range, oscillating between the levels of 44,500 and 43,400. Should the index decisively breach either of these levels, it would serve as a signal for further movement in the direction of the breakout.

In terms of potential downward movement, it is anticipated that the index will find support levels around 42,990, followed by 42,800 and 42,580. These levels are projected to function as safety cushions, cushioning the impact of any potential declines.

Conversely, an excellent buying opportunity would manifest if the index successfully surpasses the resistance level of 44,500. Once this critical level is breached, subsequent resistance levels on the charts are expected to emerge around 45,000, 45,500, and 47,500.

Considering the prevailing upward trend, it is advisable to adopt a trading strategy that involves seeking opportunities to purchase the index and its constituents near the aforementioned support levels.

It is recommended that day traders and those engaging in short-term trading practices follow this approach, buying near the support levels and selling near the resistance levels, as long as the range-bound behavior of the index remains intact.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).