Pivot level for Nifty stands at 19,336, near support seen at 19,600

Nifty 50 Index: Critical Levels to Watch for Near-Term Traders

The Nifty 50 Index, currently trading at 19,675.25, is approaching crucial support levels in the near term. This analysis highlights the significance of these levels and provides a trading strategy for traders to navigate the current market conditions.

In the near term, the index is edging closer to the support levels of 19,600 and 19,436. However, the pivotal level to watch is 19,336. If the index breaks and closes below this level, it could trigger a cascade of stop-loss orders, potentially ushering in a bearish trend.

The first support following this breach would be at 18,975, with the final target support at 18,600, which would also signify an oversold zone. 

For bullish traders, 19,336 is a critical level to monitor closely, as it represents the last hope for maintaining a bullish outlook. Failure to hold this level could shift the market sentiment decisively towards bearishness. 

On the flip side, if the index manages to avoid breaking below 19,336 and rebounds, closing above 19,850, a sharp rally could unfold. In such a scenario, resistance levels at 20,375 and 20,600 become relevant targets to watch. 

Given the current short-term bullish trend, the recommended trading strategy for near-term traders is to keep a vigilant eye on the 19,336 level. Consider treating it as a strict stop-loss point. Additionally, look for buying opportunities near the support levels of 19,600 and 19,436, with a closing basis stop-loss set at 19,336.

Nifty Bank Index: A Strong Support Holds the Key

The Nifty Bank Index, currently trading at 44,612.05, has recently closed at a critical juncture, precisely at the robust support level of 44,600. This analysis underscores the importance of this level and offers insights into the prevailing market conditions, along with a recommended trading strategy for near-term traders.

The present close of the Bank Nifty at 44,600 signifies a touchpoint with a highly significant support level. The stability of the index above this level is paramount, as a close below it could potentially pave the way for a downward move towards 44,180. This lower level should be closely monitored by traders as it could act as a subsequent support.

Despite the recent correction in the near term, it is essential to recognize the prevailing short-term bullish trend. The current correction is likely a pullback rally within this trend. 

In such circumstances, traders are advised to view the decline as an opportunity to buy the index near the anticipated support levels, which are at 44,600 and 44,180. A stringent stop-loss set at 43,900 provides a safety net for these positions. 

Conversely, if the index breaches the 43,900 level, it could trigger a fresh round of correction. In this scenario, the subsequent target and support levels on the charts are expected to be around 42,920 and 41,925. 

In summary, the Nifty Bank Index is standing firm at a critical support level of 44,600. The short-term bullish trend remains intact, and the current correction should be perceived as an opportunity to buy on dips near the support levels mentioned.

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