Charts signal bullish trend for Nifty50, Nifty Bank over short-term

According to the technical analyst, the indices current market price, and identified short-term bullish trend, presents an opportunity for investors to potentially generate positive returns

Nifty 50
Last close: 18,069

Based on the chart patterns, the short-term trend is identified as bullish, while there is an expectation of a minor correction in the near term. This is primarily due to the bullish breakout observed on the daily charts. Therefore, in light of this bullish trend, traders and investors are advised to adopt a strategic approach to optimise their investment opportunities.

One such trading strategy would be to look out for opportunities to purchase the index on dips near the support range. The first support range for the index is expected to be around 17,800 - 17,750, followed by 17,500 - 17,425.

In addition to the chart patterns, the technical indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also indicate that the index may underperform in the near term.

Thus, traders and investors are recommended to exercise caution and carefully monitor the developments in the market.

In conclusion, the Nifty 50 index's short-term trend is bullish, and traders and investors can capitalise on this trend by adopting an informed and strategic approach, which involves purchasing the index on dips near the support range.

Nifty Bank
Last close: 42,661.20 

The short-term trend for the index is identified as bullish, given that the near term is expected to experience a correction. This correction, in turn, is regarded as a healthy sign for the bulls in the short term.

Based on chart analysis, the support levels for the index are expected to be around 41,800 - 41,750, followed by 40,600 - 40,525. Therefore, traders and investors are recommended to start accumulating the index around these levels, as the technical indicators in the near term are indicating an impending correction.

This is evident from the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic indicators. In light of this analysis, the optimal trading strategy for traders and investors would be to sell on the rise, with a stop-loss at 43,750, and a target expected around 41,800 - 41,750.

Once the index breaks this range on a closing basis, the target is expected to be around 40,600 - 40,525. While the short-term trend is bullish, traders and investors must exercise caution and manage their risks to avoid undue losses.

In conclusion, the index's current market price, along with identified short-term bullish trend, presents an opportunity for traders and investors to potentially generate positive returns.

However, it is crucial to approach the market with a well-informed and strategic plan, backed by diligent risk management practices, to optimise investment opportunities and mitigate potential risks.

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