Navigating the dynamic landscape of the stock market requires insightful strategies, especially when it comes to indices like Nifty and Bank Nifty. Expert analyst Virendra Kumar shares valuable insights into today’s market trends, providing a comprehensive perspective for traders to make informed decisions.
Nifty Strategy Insights:
In terms of Nifty, key resistance levels to monitor are at 19377-19420 and the major resistance zone at 19461-19492/19523. On the downside, primary support can be found at 19261/19250-19207, with a stronger base identified at 19222-19190. Notably, the listing of Reliance and Jio Financial carries significance for today’s market dynamics.
Call writers are notably present at 19400 and 19500, indicating potential resistance levels. Crucially, Nifty’s 20-day Exponential Moving Average (20DEMA) is situated at 19492, while the 50-day Exponential Moving Average (50DEMA) resides at 19261. It’s important to note that the 19300 mark lacks strong option support.
The anticipated trade range for today lies between 19377/420 on the upper side and 19261/250 on the lower side. Virendra Kumar suggests a strategy of SELL/LONG EXIT at higher levels and COVER SHORT/LONG at lower levels. Notably, a substantial upside could unfold only above 19261/250 and 19377/420. If sustained above 19420, a swing towards 19461-492 becomes a possibility. Conversely, a break below 19250 could lead to a range of 19207-162, guiding short positions accordingly.
Bank Nifty Strategy Insights:
Shifting focus to Bank Nifty, the first resistance range is projected at 44030-44184, with a major resistance area at 44338-44490. On the downside, initial support is envisaged at 43680-43510, while a broader base is established at 43363-43208. Analysis of options data suggests a range-bound movement for Nifty Bank.
Call writers are prominent at 44000-44100-44200-44300 levels, while put writers dominate at 43800-43600-43500. The significance of the 100-day Exponential Moving Average (100DEMA) at 43800 is highlighted for today’s strategy. The anticipated trade range spans from 44100-44200 on the upside to 43680-43510 on the downside.
Kumar advises a strategy of Sell/Exit at higher levels and Cover/Long at lower levels for Bank Nifty. A potential breakout could occur only above 44184/44200, while a breakdown might transpire below 43510-43480.
