Nifty, Nifty Bank eye range-bound moves; here's how to trade them

Given that the overall trend is bullish, the recommended trading strategy would be to consider buying NIfty50 near the support levels

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Nifty Index

The Nifty Index is currently trading at a CMP of 18,563.40. Based on the charts, the index is currently in a range-bound phase, with the range defined as 18,500 on the lower side and 18,780 on the upper side. A close above or below this range would indicate a potential breakout in that direction.

If the index breaks below the lower range, the next support levels to watch for are 18,450 and 18,325. On the other hand, if the index breaks above the higher range, the next resistance levels to monitor are 18,900 and 19,100.

The RSI indicator is currently sideways, suggesting a lack of clear direction in terms of momentum. The MACD indicator is flat, indicating a neutral stance.

Given that the overall trend is bullish, the recommended trading strategy would be to consider buying near the support levels. It is important to set a stop loss at 18,150 to manage risk in case the price moves against expectations.

Nifty Bank Index

The Nifty Bank Index is currently trading at a CMP of 43,989. Based on the charts, the index is currently in a range-bound phase, with the range defined as 44,500 on the upper side and 44,650 on the lower side. A close above or below this range would indicate a potential breakout in that direction.

On the resistance side, the key levels to watch for are 45,200 and 45,500. For support, the levels to monitor are 43,500, 43,100, and 42,900. It is important to note that a trade and close below 42,900 would be a short term bearish signal and could result in the index finding support directly at 41,900 and 41,300.

For bullish positions, it is crucial to maintain a strict stop loss at 42,900. This level serves as the last hope for bullish positions, and a trade and close below it would invalidate the bullish stance. Traders should be prepared to exit their bullish positions if the index breaks below 42,900.

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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal