Nifty 50: 3 ways in which the index could move, near-term target & more

The expectation is that the Nifty50 index will continue to perform well in the short and medium term, with the potential for reaching new highs

Photo: Bloomberg
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Photo: Bloomberg

Ravi Nathani Mumbai

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Nifty50 Index: Trends, Strategies, and Investment Opportunities
The Nifty Index is currently trading at 19,435.30. Over the past few days, the index has been trading within a narrow range, fluctuating between 19,650 and 19,225. In the last two trading sessions, there has been a notable recovery from the lower end of this range, closing around the midpoint. This price action suggests three possible scenarios:

1. Resistance at 19,650: The index may encounter resistance at the upper boundary of the range, which is 19,650. This could lead to a small correction or consolidation in the near term.

2. Breakout above 19,650: If the index successfully breaks above 19,650 and closes above this level, it could indicate a fresh buying interest in the market. In this case, the index may target higher levels or even set new record highs.

3. Correction below 19,225: Alternatively, if the index experiences a correction and closes below the lower boundary of the range at 19,225, this could signal a bearish trend in the near term. Potential support levels could be expected around 19,075 to 18,980.

Considering the overall bullish trend in the charts, the preference here is to "buy on dips." The expectation is that the index will continue to perform well in the short and medium term, with the potential for reaching new highs. 

Nifty Bank Index
The Nifty Bank Index stands at 44,436.10 in the current market scenario. Looking at the short-term charts, things seem positive. It has rebounded impressively from recent lows, and closed near the upper end of its current trading range, indicating strong upward momentum.

Technically speaking, the next significant challenge for the Nifty Bank Index is anticipated around 44,825. If the index manages to close above this level, it could signal a clear shift towards a bullish trend. In this case, a sound trading strategy would involve buying the index when it crosses the 44,825 threshold, with targets set at 45,225 and 45,636.

To mitigate risks, it's recommended to establish a strict stop-loss order slightly below the 43,750 level. If, by any chance, the index closes below this critical level, it could signify a shift in market sentiment, and downside targets of 43,264 and 42,775 would come into play on the charts.

Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. 


First Published: Sep 04 2023 | 07:49 AM IST

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