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Nifty, Bank Nifty likely to consolidate in the near-term

According to Ravi Nathani, an independent technical analyst, all the Nifty may seek support in the range of 19,550 - 19,300 levels.

NSE, national stock exchange, nifty50
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Ravi Nathani Mumbai

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Nifty 50 index poised for a short-term pullback; Traders advised to watch support and resistance levels

The Nifty 50 Index is presently trading at a CMP (Current Market Price) of 19,745. In the near term, the index is expected to undergo a minor pullback signaling a potential correction.

Technical analysis suggests that support levels are likely to emerge within the range of 19,550 to 19,300 serving as a cushion to prevent significant downside movements.

Traders should closely monitor the index's performance and be cautious of a potential fresh round of selling if it closes below the critical support level of 19,300. Such a breach may trigger further selling pressure in the market.

Despite this short-term pullback, the overall trend remains bullish for both the short and mid-term indicating favorable market conditions for investors. A recommended trading strategy for traders is to accumulate the index and its constituents within the support zone of 19,550 to 19,300.

This strategy positions traders to take advantage of potential buying opportunities within the support range. On the higher side, the index is expected to encounter strong resistance around 20,180. A decisive close above this level would signal a fresh round of buying interest in the market.

Nifty Bank index poised for bullish consolidation; Traders advised to book profits wisely

The Nifty Bank Index is currently trading at a CMP (Current Market Price) of 46,075, indicating a bullish trend on charts. In the near term, the index is expected to undergo a consolidation phase within the range of 46,475 to 45,550. 
Considering the index's proximity to the oversold zone traders are advised to carefully book profits when the index nears the higher range of the consolidation. This cautious approach will help optimize gains amid potential market fluctuations. 
A significant fresh round of selling is anticipated only if the index closes below the critical support level of 45,675. In such a scenario the next support levels are projected at 45,450, 45,250, and 44,925.

If the index reaches the oversold zone around 44,100 on any given day investors are encouraged to actively seek investment opportunities and initiate fresh positions. The short and mid-term patterns suggest a bullish trend on the charts during this period.

For near-term traders, a prudent strategy involves booking profits on price rises and repurchasing when the index approaches support levels. On the other hand, investors should consider initiating a buy position when the index hovers around the oversold levels of approximately 44,100.

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

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First Published: Jul 24 2023 | 7:07 AM IST

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