Nifty50, Bank Nifty: Buy when the indices approach these support levels

According to Ravi Nathani, caution is paramount as the Nifty index teeters precariously near a significant support level at 19,600

Nifty Index: Buy near support levels

In the dynamic landscape of the Nifty Index, traders find themselves at a pivotal juncture. The current value, perched at 19,638.30, signals a short-term uptrend. Yet, caution is paramount as it teeters precariously near a significant support level at 19,600.

Should it dip beneath this critical point, the index might discover a footing around 19,436 and 19,336. To mitigate risks, traders are advised to set a stop-loss at 19,225, ensuring a safety net in the event of a sudden downturn.

For astute traders seeking strategic moves, a prudent approach emerges: buying when the index approaches these support thresholds. By doing so, traders position themselves to capitalize on potential upward bounces while safeguarding their investments.

Conversely, the journey upwards is studded with hurdles. Resistances loom at 19,840, 19,990, and 20,164, representing zones where the pace of gains might decelerate. This insight becomes invaluable, offering traders a clear delineation for profit-taking or setting targets. 

Nifty Bank Index: Buy near support levels

The Nifty Bank Index stands at a crucial crossroads, with its current market price indicating a short-term bullish trend on charts. However, the near-term landscape paints a different picture, showing a bearish trajectory.

Presently, the index finds itself perched precariously close to a vital support level. At this juncture, technical analysis suggests that immediate support rests around 44,180 and 43,900. To safeguard their positions, traders are advised to set a strict stop-loss at 43,600. This strategic move acts as a protective barrier, ensuring minimal losses in case of unexpected market fluctuations.

Amidst this backdrop, an astute trading strategy emerges: purchasing the index when it hovers near these support levels. By doing so, traders position themselves strategically, capitalizing on potential upward movements while minimizing risks.

Looking forward, the index has its sights set on ambitious targets. A successful bounce from the support levels could pave the way for gains, with targets placed at 44,950, 45,250, and 45,500. These points serve as potential milestones, representing opportunities for traders to secure profits and make informed decisions based on market movements.

Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He does not hold any positions in the indices mentioned above. The references to specific securities in this report are for illustrative purposes only and are not intended to be and should not be interpreted as a recommendation to buy or sell any specific securities. It is recommended that readers conduct their own research and consult a SEBI registered financial advisor before making any trades in stocks or indices.