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Below the Quote on Nifty, Bank Nifty outlook by Hardik Matalia, Derivative Analyst, Choice Broking

The Nifty 50 index opened with a gap-up and remained stuck in a narrow range, trading sideways for most of the session. However, it managed to hold onto its gains and ended the day on a positive note above the 24,850 mark. On the daily chart, the index has formed a small-bodied bullish candle with a long lower wick and a relatively smaller upper wick, suggesting buying interest at lower levels but also some profit booking near the highs. On the downside, immediate support is now placed at 24,800, followed by the 24,700–24,500 zone. A breach below these levels could invite extended selling pressure. On the upside, 25,000 remains an immediate and crucial resistance level, followed by 25,200. A decisive move and sustained close above these levels would be necessary to trigger fresh buying momentum towards the 25500 mark. Traders may consider buying opportunities only above the 25,000 zone, with a strict stop-loss at 24,800 on a closing basis. Overall, maintaining strict risk management and caution is advisable in the current setup.

Key Resistance: 25000-25200

Key Support: 24800-24700

Strategy: Buy above 25000 levels for the target of 25200-25500 level

Stop-Loss: 24800 on closing basis.

BANKNIFTY

Bank Nifty opened on a flat note, and while some buying was witnessed in the initial trades, the index failed to sustain at higher levels. It eventually ended the session flat, closing slightly above the 54,200 mark. On the daily chart, a bearish-bodied candle has formed with a lower wick, indicating selling pressure at higher levels while some buying interest emerged from the lows. On the downside, immediate support is placed at 54,000, followed by the 53,800–53,500 zone. A breach below these levels could trigger further downside pressure. On the upside, 54,500 remains the immediate resistance, followed by the 54,800–55,000 zone. A decisive break and sustained move above these levels would be required to open the doors for fresh buying momentum towards 55,500 mark. Traders may consider buying opportunities only above the immediate resistance zone for short-term gains, while continuing to stay cautious and maintaining strict stop-losses amid prevailing market volatility.

Key Resistance: 54500-54800

Key Support: 54000-53800

Strategy: Buy above 54500 levels for the target of 55000-55500 levels.

Stop-Loss: 54000 on closing basis.

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