Will Nifty Rebound to 23,250? Can Bank Nifty Climb to 50,000?
Nifty Rebound : The Indian stock market remained volatile on February 13, with the Nifty 50 and Bank Nifty experiencing sharp intraday swings before closing in the red. Despite an early rally, both indices failed to sustain their gains, highlighting the ongoing bearish sentiment. Technical analysts suggest that Nifty 50 will face strong resistance at 23,250, while Bank Nifty could target 50,000 if it holds key support levels. Let’s dive deeper into the market outlook and possible trading strategies.
Nifty 50 Outlook: Key Levels to Watch
The Nifty 50 closed at 23,031, down 14 points, reflecting uncertainty in the market. Analysts suggest that the index is at a critical juncture, with 22,800 serving as a strong support level and 23,250 acting as a major hurdle.
Technical Indicators and Trading Strategy
- Hardik Matalia (Choice Broking):
Nifty formed an Inverted Hammer candlestick pattern, indicating a struggle to sustain higher levels. A break below 22,900 could trigger further selling, while a breakout above 23,500 may fuel a rally toward 24,000.- Strategy: Sell Nifty Futures near 23,500, targeting 22,775, with a stop-loss at 23,600.
- Chandan Taparia (Motilal Oswal Financial Services):
Nifty showed bearish pressure throughout the week. As long as it remains below 23,150, weakness could extend to 22,800.- Strategy: Sell on a bounce near 23,333, targeting 22,800.
- Riyank Arora (Mehta Equities):
The index is above its trendline support at 22,750, indicating strong momentum. If Nifty holds above 23,019, it could move toward 23,500 and 23,800.- Strategy: Buy Nifty Futures at 23,019, with a stop-loss at 22,750, targeting 23,300.
- Kunal Kamble (Bonanza):
The falling trendline continues to act as a resistance, keeping the short-term trend negative.- Strategy: Deploy a Back Spread Strategy, selling 1 lot of 23,000 Put and buying 2 lots of 22,800 Put.
Key Resistance & Support Levels for Nifty
| Levels | Values |
|---|---|
| Key Resistance | 23,250, 23,500 |
| Key Support | 22,800, 22,775 |
Bank Nifty: Can It Reach 50,000?
Bank Nifty closed at 49,360, losing 120 points, after struggling to sustain early gains. Despite an initial rally of 350 points, the index ended negative, signaling bearish pressure.
Market Sentiment & Strategy
- Hardik Matalia (Choice Broking):
Bank Nifty formed an Inverted Hammer after failing to hold 49,700, suggesting further downside.- Strategy: Sell near 49,800, targeting 49,250.
- Chandan Taparia (Motilal Oswal):
If the index remains below 49,750, it could fall to 49,000 or even 48,500.- Strategy: Sell on a bounce with a target of 48,500.
- Riyank Arora (Mehta Equities):
A double-bottom reversal suggests an uptrend, especially if PSU banks outperform.- Strategy: Buy at 49,359, targeting 50,500.
- Kunal Kamble (Bonanza):
The index is trading below its 100 EMA, keeping the trend weak. Options data suggest resistance at 50,000.- Strategy: Buy 49,300 Put Option for a bearish bet.
Key Resistance & Support Levels for Bank Nifty
| Levels | Values |
|---|---|
| Key Resistance | 49,500, 50,000 |
| Key Support | 49,000, 48,500 |
Conclusion: What Should Traders Do?
- Nifty 50: Resistance at 23,250 remains a crucial barrier. If it breaks above 23,500, a bullish reversal could take it toward 24,000. However, as long as it stays below 23,250, selling pressure may dominate.
- Bank Nifty: Holding 49,250 is critical for a move toward 50,000. If it breaks below 49,000, further downside is likely.
Best Strategies
- For Bears: Sell Nifty Futures near 23,500 or Bank Nifty near 49,800 with strict stop-losses.
- For Bulls: Buy Nifty above 23,019 or Bank Nifty above 49,359, targeting higher levels.
With volatility increasing, traders should adopt a disciplined risk management strategy. Stay updated with market trends and keep an eye on global cues for directional clarity.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.