Bullish Momentum Continues: Nifty 50 and Bank Nifty Analysis

Bullish Momentum Continues: Nifty 50 and Bank Nifty Analysis

Explore the latest market trends and discover trading strategies for Nifty 50 and Bank Nifty. Will the upward momentum persist?

Nifty 50 Outlook

The Nifty 50 closed at 23,869 on Wednesday, marking a gain of 147.5 points (0.62%). The index has formed a strong base near the 23,350 level and continues its bullish pattern of higher highs and higher lows. A recent Three White Soldiers candlestick pattern suggests a fresh bullish move. The Relative Strength Index (RSI) remains above 65, signaling increasing positive momentum. Analysts anticipate that the Nifty will sustain its bullish trend as long as it remains above the 23,350 mark. Resistance levels are expected at 24,055, with further resistance at 24,450.

Trading Strategy for Nifty:

• Buy Nifty at CMP or on dips until 23,560 for a target of 24,450, with a stop-loss at 23,350.

Bank Nifty Outlook

The Bank Nifty closed at 52,871, rising 264.5 points (0.5%). Similar to the Nifty, the Bank Nifty is expected to maintain its positive momentum. A decisive move above 24,000 could take the index towards 24,200.

Trading Strategy for Bank Nifty:

• Use a Bull Call Spread by buying a 23,900 strike Call and selling a 24,100 strike Call. Set a stop-loss at Rs 5 and a target of Rs 60, followed by Rs 90. The total cost is Rs 30.

In summary, investors should closely monitor the support levels (23,700 for Nifty and 52,500 for Bank Nifty) to gauge the sustainability of the current upward trend.