Trading Plan: Will Nifty 50 sustain above 25,400, Bank Nifty hold 52,000?

Nifty Trading Plan

The Nifty 50 managed to close above 25,400 for the first time in four consecutive days on September 17. However, whether it will sustain this level remains key in the coming sessions. If the Nifty holds above 25,400, a further rally toward 25,600 is possible. On the other hand, if it decisively breaks below this level, some profit booking may occur. Immediate support lies at 25,200, while the crucial support level is 25,000. In the case of the Bank Nifty, as long as it holds 52,000, the level to focus on is 52,500, with support at 51,750, according to experts.

On Tuesday, the Nifty 50 rose 35 points to close at 25,419, while the Bank Nifty gained 36 points, ending at 52,189. On the NSE, 1,515 shares declined while 946 shares advanced.

Nifty Outlook and Strategy

Apurva Sheth, Head of Market Perspectives & Research at Samco Securities

The Nifty 50 has traded with a positive bias, but the daily trading range has narrowed over the last three sessions. It seems that market participants are cautious ahead of the big event—the FOMC meeting. It is believed that the US Federal Reserve meeting could act as a catalyst, providing a clear direction for the markets. Therefore, traders should take positions suitable for a significant move in either direction over the week.

Key Resistance: 25,500, 25,700, 26,000

Key Support: 25,000, 24,800, 24,500

Strategy: Traders should deploy a Long Iron Fly strategy by buying one lot each of the 25,400 Call and Put of Nifty (September 26 expiry) and selling one lot of the 25,700 Call and one lot of the 25,000 Put. Approximately Rs 25,500 in margin will be required to execute this strategy. For stop-loss, exit the trade when the total loss on the strategy exceeds Rs 3,000. For targets, either hold until expiry or book profits when the total profit reaches Rs 3,000.

Riyank Arora, Technical Analyst at Mehta Equities

Nifty has broken out above 25,333, indicating a bullish trend. The index now targets 25,600 and 25,700, with immediate support placed at 25,292. The overall outlook remains positive.

Key Resistance: 25,600, 25,700

Key Support: 25,292

Strategy: Traders are advised to buy Nifty at the current market price (CMP) with a target of 25,600 and 25,700. A strict stop-loss at 25,292 is recommended to manage risks.

Ashish Kyal, Founder and CEO of Waves Strategy Advisors

Nifty 50 continues to trade between 25,440 and 25,300. It is consolidating at all-time high levels, forming neutral candles over the past two sessions, suggesting indecision between buyers and sellers. Currently, a breach above 25,450 could trigger fresh buying with a target of 25,550, while a break below 25,300 could be a cause for concern.

Key Resistance: 25,560 (Nifty Futures)

Key Support: 25,290 (Futures)

Strategy: Long positions can be created above 25,490 (Futures), with a stop-loss at 25,420 (Futures) and a target of 25,560 (Futures).

Bank Nifty - Outlook and Positioning

Apurva Sheth, Head of Market Perspectives & Research at Samco Securities

Nifty Bank has moved higher over the last three trading sessions, but momentum seems to be waning, and fatigue may be setting in. The level of 52,284 might act as strong resistance in the immediate term, while 52,000 could serve as strong support. Thus, traders can consider non-directional bets in Nifty Bank until the Federal Reserve meeting concludes.

Key Resistance: 52,284, 52,500, 53,000

Key Support: 52,000, 51,500

Strategy: Traders can sell a Call and Put each of the 52,100 strike (September 18 expiry), collecting a total premium of Rs 4,744 with a margin of approximately Rs 1,18,974. A stop-loss should be placed at 50% of the premium collected (Rs 2,372), exiting the position if the total loss exceeds this amount. For targets, exit the position before expiry around 3:00 pm.

Riyank Arora, Technical Analyst at Mehta Equities

Bank Nifty finds strong support at 52,000, with immediate resistance at 52,500. If 52,000 holds, the index is likely to see a significant upside, with the potential to break through resistance and extend gains. A breach of this support could lead to a downside target of 51,750. Traders should monitor price action around 52,000 for key signals.

Key Resistance: 52,500, 53,000

Key Support: 52,000, 51,750

Strategy: Buy Bank Nifty at the current market price, with a stop-loss at 51,750, and a target of 52,500 and 53,000.

Ashish Kyal, Founder and CEO of Waves Strategy Advisors

A decisive breakout above 52,300 is required for fresh buying to emerge in Bank Nifty.

Key Resistance: 52,700 (Futures)

Key Support: 51,980 (Futures)

Strategy: Long positions can be created above 52,380 (Futures), with a stop-loss at 52,180 (Futures) and a target of 52,600, followed by 52,790 (Futures).

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