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Traders can adopt 'buy-on-dips' strategy for Nifty: Ravi Nathani

According to the technical analyst, the best trading strategy for traders would be to buy on dips with a strict stop loss of 16,800 on a closing basis for Nifty

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Ravi Nathani Mumbai

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Nifty
Last close: 16,945.05

The near-term charts suggest that the index is expected to trade in the range between 17,250 to 16,800. A trade above or below this range would act as a trigger for the market to move in a particular direction.

Given that this is the last week of the financial year, the Nifty Index is likely to remain sideways and consolidate with a bullish bias.

Therefore, the best trading strategy for traders would be to buy on dips with a strict stop loss of 16,800 on a closing basis.

No Trade Zone: 16,990 – 16,900
Intraday Resistance Level: 17,020 – 17,064 – 17,164   
Intraday Support Level: 16,864 – 16,800  – 16,625

Nifty Bank
Last close: 39,395.35

Charts suggest that the near-term trend of the index is range-bound, with a range of 40,150 to 38,600. A trade above or below this range would act as a trigger in the direction of the market. However, in the short term, the index is oversold, and a technical bounce could be expected.

The resistance level for the market is expected to be around 41,000. Therefore, the best trading strategy for traders would be to buy near the support level or hunt for opportunities to accumulate at dips, as post this month-end, the index is expected for a technical bounce.

In conclusion, traders can expect the Nifty Bank Index to remain range-bound in the near term, with a potential technical bounce in the short term.

The range of 40,150 to 38,600 would act as a trigger for the market to move in a particular direction. Traders can use the buy-on-dips strategy or accumulate near the support level to capitalise on the expected technical bounce.

However, it is important to note that market trends can change quickly, and traders should always be cautious and follow their risk management strategies.

No Trade Zone: 39,505 – 39,281
Intraday Resistance Level: 39,681 – 39,881  – 39,999
Intraday Support Level: 39,210 - 39,010 – 38,630

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

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First Published: Mar 27 2023 | 7:52 AM IST

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