In today’s trading scenario, a robust market opening is on the horizon, riding the wave of positive indicators witnessed on August 21. Seasoned expert Virendra Kumar sheds light on optimal trading strategies for both Nifty and Bank Nifty, offering a comprehensive approach for successful trading endeavors.
Nifty Trading Strategy Insights:
With meticulous analysis, Virendra Kumar presents a strategic outlook for Nifty trading. Key resistance levels are pegged at 19421-19482 and 19510-19546, while essential support bases stand at 19317-19267 and 19214-19177. Monday’s data showcases a narrow trading range, emphasizing the achievement of 19420 amidst swings beyond 19377. Notably, FIIs continue cash selling and have engaged in 1.9 lakh put shorts. Call writers have fixed their positions around 19400-19500-19600. The 20-day Exponential Moving Average (20DEMA) for Nifty resides at 19482, indicating a pivotal level.
Further insight reveals put writers favoring 19300-19200 levels. The substantial 50-day Exponential Moving Average (50DEMA) for Nifty stands at 19267. With these parameters in mind, a small trading zone emerges at 19436-19267. Trading recommendations include buying on dips near Base-1 (19313-19267) and exiting near Resistance-1 (19421-19436). A significant short covering is plausible only above 19436, accompanied by a swing reaching 20DEMA (19482-19510). The larger base at 19267/250 holds importance; a breach could lead to a decline towards 19216-177.
Strategizing for Bank Nifty:
Expert analysis extends to Bank Nifty, offering actionable insights for successful trading. Key resistance levels materialize at 44099-44195 and 44533-44588, while essential support bases are established at 43834-43641 and 43530-43490. Bank Nifty’s current position suggests consolidation, particularly within the 44000-43900-43800 range, which garners support from put writers. Noteworthy is the 100-day Exponential Moving Average (100DEMA) of Bank Nifty positioned at 43837. Call writers have expressed interests around 44000-44200-44300. The 10-day Exponential Moving Average (10DEMA) for Bank Nifty resides at 44268.
Notably, stability is observed in Kotak Mahindra Bank, while strength prevails in IndusInd Bank, Axis Bank, and ICICI Bank. Meanwhile, HDFC Bank exhibits a weaker structure, with the critical level of 1580-1575. The suggested trade zone spans 44195-44268-43834/43641, emphasizing a strategy of purchasing during dips and exiting at higher levels. A substantial upward movement is viable only above 44195-44268, with the potential to reach 44533-44588. Conversely, a significant downfall could occur if the 43530-43490 level is breached.