Nifty 50 is trading near its lifetime high, before two weeks
it has made new highs and sustaining the same from the last two weeks. These
two weeks were very zic-zac, not given a chance to predict the trend. Let’s
take the first technical overview of both indexes in this New Year.
Technical Overview of
Nifty: Overall trend of Nifty is strongly
bullish and currently in sideways. Nifty is continuing its Higher High & Higher Low trend from Indian government election
result day. The last Higher High is around 12295 and we are waiting for a breakout
to this level. Once Nifty crosses the level and closed above then uptrend will go
ahead. However, there is immediate resistance of the weekly trend line i.e.
around 12340-50. So there are slight chances of a small hurdle.
If we see a weekly chart then Nifty is not breaking down its
weekly low from the last three weeks. The selling pressure was huge at the start
of the week and it is recovered on the weekend. That means there is buying on
every dip, traders are ready to buy discounted Nifty.
We have to wait for either breakout or breakdown then we can trade safely. Riskers can buy Nifty near support i.e. 12160 or they can sell Nifty near resistance i.e. 12295.
Technical Overview of Bank Nifty: Currently Bank Nifty is also trading in a sideways
zone and closed near zone support. There is immediate strong support around
31700 and sentiments are slightly bearish. We will buy Bank Nifty near support
with confirmation of the bullish chart pattern.
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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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Bank Nifty Index