Trading Plan: Can Nifty 50 manage to hold 25,400, Bank Nifty sustain 56,800?

Nifty Trading Plan for July 8

The Nifty 50 and Bank Nifty both closed flat, with their chart patterns signaling indecision among buyers and sellers, and a lack of momentum—though the overall trend remains upward. In the upcoming sessions, the Nifty 50 is likely to remain in the 25,300–25,700 range. A breakdown below 25,300 could open the door for a move toward 25,200–25,000, while a decisive breakout above 25,700 may drive the index toward the 25,800–26,000 zone. Meanwhile, the Bank Nifty is expected to trade in the 56,600–57,600 range. A breakout on either side could provide a clear directional move, according to experts.

On July 7, the Nifty 50 finished at 25,461, up 0.3 point, after hitting an intraday high and low of 25,490 and 25,407, respectively. The Bank Nifty fell 83 points to close at 56,949, after trading in a range of 57,152–56,838. Market breadth was dominated by bears, with 1,667 declining shares compared to 1,008 advancing shares on the NSE.

Nifty Outlook and Strategy

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

The Nifty has been consolidating broadly between 25,700 and 25,000, with a narrower trading band of 25,600 to 25,300. Options activity suggests a sideways-to-negative bias, as Call writing has been higher than Put writing, resulting in a Put-Call Ratio (PCR) of 0.80. Meanwhile, India VIX has reversed from its 1-year low near 11.50 to 12.64, signaling rising risk perception.

Unless the 25,600–25,700 zone is convincingly breached on the upside, short-term traders may adopt a sell-on-rise approach or sell on breakdowns below 25,300. A breakout above 25,700 could lead to upside targets of 26,000 and 26,200.

Key Resistance: 25,600, 25,700

Key Support: 25,400, 25,300

Strategy: Sell Nifty Futures on rise near 25,550, with a stop-loss above 25,700, targeting 25,200 and 25,000. Alternatively, sell below 25,300, with a stop-loss of 25,500. Or buy only above 25,700 (on breakout), with a stop-loss at 25,500, targeting 26,000 and 26,200.

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

Despite the lack of momentum on Monday, the Nifty 50 consistently respected the S3 Camarilla daily pivot support near 25,420, signaling underlying strength. Given the narrow range, a directional move is anticipated in the next 1–2 sessions. Technically, a hidden bullish divergence has formed on the 15-minute chart, aligning with an ascending trendline and the 200-period EMA, strengthening the case for an upside move.

Key Resistance: 25,600, 25,700

Key Support: 25,400, 25,300

Strategy: Buy Nifty Futures in the 25,530–25,550 zone, with a stop-loss at 25,400, targeting 25,800.

Vidnyan S Sawant, Head of Research at GEPL Capital

The Nifty 50 remains in a sideways phase, though the broader trend remains firmly positive across all timeframes. The RSI continues to rise and stays above the 60 mark, reflecting sustained positive momentum. The index is also trading above its 20-day EMA, which serves as dynamic support and reinforces the ongoing uptrend.

Key Resistance: 25,800, 26,277

Key Support: 25,200, 24,800

Strategy: Buy Nifty at CMP for targets of 25,800 and 26,277, with a stop-loss at 25,200.

Bank Nifty - Outlook and Positioning

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

Bank Nifty has given up most of its intraday gains and reversed from the upper end of its range. The lack of momentum is triggering profit booking at higher levels, prompting aggressive Call writing, which restricts further up moves.

The Put-Call Ratio (PCR) stands at 0.95, indicating a balanced battle between bulls and bears. However, price action suggests bears have the short-term upper hand unless the 57,500 level is breached decisively.

Key Resistance: 57,200, 57,500

Key Support: 56,200, 56,000

Strategy: Sell Bank Nifty Futures on rise in the 57,000–57,200 zone, with a stop-loss at 57,500, targeting 56,200 and 56,000. Alternatively, buy above 57,500, with a stop-loss at 56,500, targeting 58,500 and 59,000.

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

The Bank Nifty held above the S3 Camarilla daily pivot support near 56,900, indicating buying interest at lower levels. This support also aligns with the 200-period EMA on the 15-minute chart. Furthermore, a hidden bullish divergence on the same timeframe signals a possible reversal.

With price consolidation and bullish technical signals in place, a directional breakout—most likely upward—could occur in the next few sessions if support levels hold.

Key Resistance: 57,200, 57,500

Key Support: 56,800, 56,600

Strategy: Buy Bank Nifty Futures in the 57,200–57,100 zone, with a stop-loss at 56,800, targeting 57,750.

Vidnyan S Sawant, Head of Research at GEPL Capital

On the daily chart, Bank Nifty is holding well above its 20-day EMA and remains steady near the 57,000 mark, reaffirming the bullish setup. The index is also trading comfortably above the 50- and 100-day EMAs, indicating strength across timeframes. Momentum indicators support this positive outlook, with a rising MACD, suggesting building buying interest.

Although minor pullbacks are possible due to the candlestick pattern, the broader trend remains strong. Unless a decisive breakdown occurs, dips are likely to attract buyers.

Key Resistance: 58,000, 58,700

Key Support: 56,400, 55,700

Strategy: Buy Bank Nifty at CMP for targets of 58,000 and 58,700, with a stop-loss at 56,400.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.