Trading Plan: Will Nifty and Bank Nifty break past sideways momentum in today's session?

On the Put side, the maximum open interest was at the 23,000 strike (with 72 lakh combined OI)

Indian benchmark indices ended higher for the third straight session on June 13, with Nifty closing at 23,398.80 levels. Bank Nifty once again faced resistance near the 50,200 zone and gradually declined as the day progressed, ending on a flat note with the bias intact. Sector-wise, Realty, IT, Auto, and Pharma were among the major gainers, while Media and FMCG were among the major laggards. The market breadth was strong, with the advance-decline ratio indicating a 2:1 at close.

Nifty Outlook and Strategy

Deven Mehata - Equity Research Analyst at Choice Broking

The Nifty Index showed strength on the daily as well as weekly charts, forming higher highs and higher lows. On the lower side, Nifty has strong support near the 23,250 levels. If the index fails to hold this support, we could witness further correction towards the next support at 23,000 levels. On the higher side, Nifty has strong resistance near the 23,500 levels with decent Open Interest data on the Call option side. If Nifty closes above 23,500, we could see it moving towards 23,700 levels.

Key Resistance: 23,500-23,700
Key Support: 23,250-23,000
Strategy: Buy on dips near 23,250 levels for the target of 23,500 and 23,700 levels.
Stop-Loss: 23,000 on a closing basis.

Chandan Taparia - Senior Vice President and Head of Derivatives at Motilal Oswal Financial Services Limited

The Nifty index has been witnessing a positive to range-bound move for the last four trading sessions, touching a fresh all-time high of 23,481 levels. However, it lacked momentum and remained in a range, with supports gradually shifting higher. It has been forming small-bodied candles on the daily frame. Now, it has to hold above 23,300 zones for an upside move towards 23,550 and then 23,700 zones, whereas supports are placed at 23,300 and then 23,150 zones.

India VIX was down by 6.26% from 14.38 to 13.48 levels. Volatility has cooled off over the last six sessions, comforting the bulls at higher zones. Option data suggests a broader trading range between 22,900 to 23,700 zones, with an immediate range between 23,200 to 23,500 levels.

Support: 23,300-23,150
Resistance: 23,550-23,700

Bank Nifty Outlook and Strategy

Deven Mehata - Choice Broking

Bank Nifty traded sideways for the past four trading sessions, forming a neutral candle on the daily chart. The index managed to close above 49,600 levels, signaling strength. On the higher side, Bank Nifty faces minor resistance in the range of 50,000-50,200 levels. Once the index manages to close above this resistance range, it has the potential to move towards the target of 50,500 levels. Today’s closing above 49,800 underscores the sideways to bullish sentiment in Bank Nifty. If the index surpasses 50,000 on a closing basis, it could attract additional buying interest, propelling it towards the significant milestone of 50,500.

Key Resistance: 50,000-50,200
Key Support: 49,600-49,500
Strategy: Buy on dips near 49,600 levels for the target of 50,200 and 50,500 levels.
Stop-Loss: 49,500 on a closing basis.

Chandan Taparia - Motilal Oswal Financial Services Limited

The Bank Nifty Index has been consolidating in a narrow range of 700 points between 49,500 to 50,200 zones for the last four trading sessions. It formed a small-bodied candle on the daily and weekly scales. The index has been consolidating due to missing momentum at higher zones, but buying is visible at small declines. Now, it has to continue to hold above 49,500 zones for an up move towards 50,250 and then 50,500 zones, while on the downside, support shifts higher at 49,500 and then 49,250 levels.

Support: 49,500/49,250
Resistance: 50,250/50,500
Strategy: Buy on decline with support at 49,250 for an upside target towards 50,500 zones.

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