Charts show bullish trend likely for Nifty50, Nifty Bank in the near-term

According to the technical analyst, traders are highly recommended to accumulate the Nifty and its underlying constituents during any dips, preferably near the support levels

Nifty 50 
Last close: 18,065

As per the current market scenario, technical charts suggest that the Nifty 50 is approaching a significant hurdle in the form of stiff resistance, which is expected to be in the ranges of 18,225-18,250 and 18,375-18,400.

However, in case the index manages to break through this range, it could lead to the emergence of an overbought zone in the near term, subsequently prompting a correction.

Nevertheless, in spite of this scenario, the overall trend is highly bullish, supported by the presence of strong signals, and therefore, traders are highly recommended to accumulate the Nifty and its underlying constituents during any dips, preferably near the support levels.

Additionally, daily analysis of charts suggest that the index will find support within the range of 18,000-17,950, which shall remain crucial for the near-term. Furthermore, if the index fails to hold onto this range, it could lead to further corrections, bringing the levels of 17,800-17,775 and 17,525-17,575 into focus.

 

Bank Nifty
Last close: 43,233.9
 

Though charts suggest a bullish trend for the index at the current market price, it is also expected to face stiff resistance in the near term, after a sharp rally in the fortnight.

The resistance is anticipated between the range of 43,575-43,625, with a close above this range likely opening doors for 43,925.

This level is also considered to be an overbought zone, which may lead to some hindrance for the bulls. As a result, sideways consolidation with a negative bias could be expected once the above-mentioned levels are attained.

On the other hand, the index is expected to find support on the lower side between 42,925-42,875.

However, if the index fails to sustain these levels, it could potentially trigger a decline, with the first downside targets at 42,600-42,550, followed by 42,200 and 41,900.

Although the overall trend is bullish, traders are advised to buy near the support levels as the index has strong bullish signals on the daily charts and technical oscillators, suggesting a potential upside in the near term.

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