How to trade Bank Nifty, Nifty50 today? Check strategy, levels to watch out

Nifty Today: The index is expected to consolidate in a range between 23,200 on the downside and 24,200 on the upside. A breakout beyond this range will trigger a decisive move

Nifty Bank, Nifty50  Today: Strategy for Jan 13, 2025:

  Nifty 50 index: Sideways Trend with Key Support at 23,260

The Nifty 50 Index is currently trading within a critical sideways range, with the key support level at 23,260, marking the previous swing low on the charts. This level serves as the last hope for bullish positions, making it essential to place a strict stoploss below 23,260 or 23,200 on a closing basis for traders holding bullish positions. 

 

The index is expected to consolidate in a range between 23,200 on the downside and 24,200 on the upside. A breakout beyond this range, whether upward or downward, will trigger a decisive move in the respective direction. 

 

Safe traders may wait for a breakout above 24,200 or below 23,200 before initiating any new trades, as the breakout will provide clarity on the directional trend. For risk-taker, buying near the support levels of 23,260, 23,200, or dips closer to these levels, with a strict stoploss on a closing basis below 23,200 is advisable. Sell near the resistance level of 24,200, booking profits on short-term positions. 

 

Technical indicators, such as RSI and MACD, are in oversold territory, suggesting that the bearish momentum may not persist for long. A technical bounce is anticipated in the near term, which could bring the index closer to the upper range of 24,200. 

 

Nifty Bank index: Oversold Levels Indicate a Technical Bounce

The Nifty Bank index has experienced a sharp correction over the last four weeks, placing it in the oversold zone on the charts. The index is now trading near the crucial support level of 48,475, a critical threshold for determining the near-term trend. A close below this level could confirm further bearishness, potentially opening the door for a decline towards 47,800. However, the likelihood of a sustained close below 48,475 appears minimal, as technical indicators like RSI and MACD suggest a highly oversold condition, increasing the probability of a technical bounce in the near term. 

 

In the event of a bounce, resistance levels on the charts are identified at 49,850 and 50,750, providing immediate targets for bullish traders. This technical rebound is expected to be short-term, driven by the oversold nature of the index. The best strategy for traders would be to Buy the index on dips, particularly near the support level of 48,475, to take advantage of the expected technical bounce. 

 

Set a strict stoploss on a closing basis below 48,475 to manage risk and safeguard against unexpected downside movements. Monitor resistance levels at 49,850 and 50,750 may act as potential profit-booking zones during the recovery.   

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Disclaimer: Ravi Nathani is an independent technical analyst. Views are his own. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. It should not be construed as a recommendation to purchase or sell such securities.