Trading Plan: Will Nifty, Bank Nifty continue to consolidate ahead of US Fed meet?

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Indian markets snapped a three-day winning streak due to profit booking. Now, market participants may be cautious ahead of the two-day US Federal Reserve policy meeting starting on Tuesday. Analysts expect the Nifty to face resistance at 23,500, with crucial support at 23,000, while the Bank Nifty is likely to inch towards 50,500, with support at 49,500 amid consolidation.

The Nifty 50 closed at 23,259.2, down 30.95 points, and the Nifty Bank closed  at 49,780.9, down 22.3 points on Monday.  About 1549 shares advanced and 807 shares declined on the NSE.

Nifty outlook and strategy

Mehul Kothari, Director and Vice President of Technical Research at Anand Rathi Investment Services

For the coming session, a high of 23,411 would serve as strong resistance, and fresh buying in the index is advisable only above this level. Meanwhile, 23,225 might provide immediate support for the coming session, and a breach of this level could result in further profit booking.

Key resistance: 23,400 – 23,500

Key support: 23,200 – 23,000

Strategy: Book Profits below 23,200.

Stop loss: 23,400

Pravesh Gour, Senior Technical Analyst at Swastika Investmart

The Nifty hit its all-time high of 23,411, which acts as immediate resistance. A break above this level could propel the index towards 23,500 and even 23,800. On the downside, the 23,000-22,800 zone offers immediate support, with the crucial 20-DMA around 22,600 acting as a stronger floor.

Key Resistance: 23,400, 23,550, 23,800

Key Support: 23,100, 23,000, 22,800

Strategy: Consider buying near 23,100

Stop Loss: Below 22,800

Jay Thakkar, Vice President at ICICI Securities

The daily and weekly momentum is well into buy mode, indicating that the short-term base is in place. Hence, the dip should be utilized as a buying opportunity. For the current weekly expiry, the index has immediate support at 23,000, whereas there is immediate resistance at 23,500 levels. This indicates some profit booking at higher levels, so the index is likely to trade within this range until the weekly expiry. A breakout from this range may result in a 500-point rally on the upside.

Key resistance: 23,500

Key support: 23,000

Strategy: Buy on dips near 23,200/23,150

Stop loss: 23,000

Bank Nifty outlook and strategy

Mehul Kothari, Director and Vice President of Technical Research at Anand Rathi Investment Services

We are witnessing a long-legged doji on the daily scale, which indicates some consolidation ahead. For the coming sessions, the range can be 49,500 – 50,300, and only a breakout or breakdown from this range would dictate the short-term trend.

Key resistance: 50300 - 50500

Key support: 49500 - 49000

Strategy: Wait and watch

Pravesh Gour, Senior Technical Analyst at Swastika Investmart

The psychological level of 50,000 presents the first hurdle. If Bank Nifty overcomes this barrier, it could target 51,300 and even 52,000. The 48,700-48,350 zone provides nearby support, while the 100-DMA around 47,400 remains a critical support level.

Key resistance: 50,000, 50,500, 51,000

Key support: 49,600, 49,000, 48,400

Strategy: Consider buying near 49,600 for potential upside

Stop Loss: Below 49,000

Jay Thakkar, Vice President at ICICI Securities

The immediate support is 49,000 and then at 48,000 wherein there are highest put OI. On the upside, 50,000 is an immediate resistance which has highest call OI, hence the short-term range is 50,000 to 49,000 and medium term range is 50,000 to 48,000 levels. The index is expected to trade sideways to negative until this weekly expiry. A breakout above 51,200 may get a huge rally as it would then get the index into a new range itself.

Key support: 49,000

Key resistance: 50,000

Strategy: Buy on Dips near 49,000/48,750

Stop loss: 48,500

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