Are Nifty and BankNifty Signs of a Trend Reversal?
About Nifty and BankNifty: Nifty 50 and Nifty Bank are benchmark indices representing the top 50 and major banking stocks in India. They are widely followed by traders and investors to assess market trends, sectoral performance, and investor sentiment.
Nifty 50 Technical Overview
Last week, Nifty 50 (24,741) rose 1.3%, while September futures gained 1.1% to 24,848. Open interest increased from 166 lakh to 174 lakh contracts, indicating long build-up. Weekly PCR is 0.80, reflecting more call selling, while September monthly PCR is 1.10, suggesting any weakness could be short-lived.
Despite early rallies, selling in the last two sessions shows bulls have not gained strong control. A breakout above 25,300 could lift Nifty futures to 26,000, while a drop below 24,550 may open the path to 24,000. Currently, trading within 24,550–25,300 offers limited risk-reward for fresh positions.
Nifty 50 Trading Strategy
With no clear bullish trend, traders may consider shorting Nifty futures (September) if prices rise to 25,200. Target: 24,600 | Stop-loss: 25,500. If 25,500 is breached, it signals bulls taking control—then go long with stop-loss 25,250 and target 26,000. Falling below 24,550 can be used to short with stop-loss 24,800 and target 24,000.
Nifty Bank Technical Overview
Nifty Bank (54,115) rose 0.9% last week. Open interest increased slightly from 28.1 lakh to 28.6 lakh contracts. September options PCR stands at 0.90, reflecting more call selling and mild bearish bias. Futures remain below key resistance at 55,000, signaling limited bullish momentum.
Support levels: 53,800 & 53,000. Resistance levels: 54,600 & 55,000. Breakout above 55,000 may lift the contract to 56,500, with further resistance at 58,000.
Nifty Bank Trading Strategy
Maintain short positions on Nifty Bank futures (September) at 54,350. Stop-loss: 55,000. Trail stop-loss to 54,300 if price drops to 53,600. Adjust to 53,600 at 53,250. Exit at 53,000 to secure gains.
For traders navigating this volatile phase, professional tips can provide guidance:
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Investor Takeaway
Short-term trends for Nifty and BankNifty remain mixed. Resistance levels are intact, so traders should wait for clear breakouts before opening new positions. Always use stop-losses to manage risk effectively.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
