Trading Plan: Will Nifty march towards 25,300, Bank Nifty climb above 51,500?

Nifty, Bank Nifty trading plan

The benchmark Nifty 50 recorded a fresh all-time closing high during the monthly F&O expiry session on August 29, continuing to outperform the Bank Nifty. The index maintained its upward trajectory for the 11th consecutive session, with momentum indicators sustaining a positive bias. Hence, experts anticipate the Nifty 50 moving towards 25,300 as the immediate target, followed by 25,500 in the September series, with support at the 25,000–24,950 zone. The Bank Nifty is likely to surpass 51,500 as long as it holds 51,000 as support on a closing basis.

On Thursday, the Nifty 50 climbed 100 points to 25,152, while the Bank Nifty gained 9 points to close at 51,153 amid volatility. On the NSE, 1,647 shares declined, while 715 shares advanced.

Nifty 50 reached a new all-time high of 25,192.90, showing high volatility on its monthly expiry. The 25,000 level serves as strong support. Currently, the index is trading positively with a higher high and higher low formation on daily charts, indicating strength. On the higher side, resistance can be seen near the 25,200 level as per the open interest data. Investors should closely monitor these support and resistance levels for further market cues. A strong close above the 25,150 level indicates bullish sentiment and suggests the possibility of continued upward movement in the near term.

Key Resistance: 25,200, 25,300

Key Support: 25,050, 24,950

Strategy: Buy on dips near the 25,050 level for a target of 25,200 and 25,300, with a stop-loss at 24,950 on a closing basis.

The Nifty index rallied strong, gaining over 1,100 points from 24,100 to 25,200 zones. It formed a bullish candle on the daily chart and gave the highest-ever close on a daily basis. The base is gradually shifting higher. Now, it needs to continue holding above the 25,000 zone for an up move towards 25,300 and then 25,450 levels, with support seen at the 24,850 zone.

India VIX is hovering near the 13–14 zones, and the overall lower base is supporting the bulls to buy at higher levels. Option data suggests a broader trading range between 24,800 and 25,600 zones, with an immediate range between 24,900 and 25,400 levels.

Key Resistance: 25,300, 25,450

Key Support: 25,000, 24,850

Strategy: Buy on declines with support at 24,850 and aim for a target of 25,450.

By closing above the 25,100 resistance level, the Nifty 50 indicates strong buyer dominance. With the index now trading above 25,130, there is potential for a move towards the 25,400 level. Support for the index is at 24,800. As long as the market remains above this support level, it is expected to continue trading higher.

Key Resistance: 25,500, 25,800

Key Support: 25,100, 24,800

Strategy: Buy one lot of the 25,100 strike Call and sell one lot each of the 25,500 and 25,800 strike Calls.

The Bank Nifty index opened on a flattish note, but buying interest was seen in the first half of the session as the index headed towards the 51,350 zone. However, it failed to hold at higher levels and drifted lower towards the 51,000 level. It formed a small-bodied candle on the daily chart but remained highly volatile in the last hour of the day. Now, it needs to continue holding above the 51,000 zone for an up move towards 51,500 and then 51,750 levels, with downside support seen at 51,000 and then 50,800 zones.

Key Resistance: 51,500, 51,750

Key Support: 51,000, 50,800

Strategy: Buy on declines with support at 50,500 and aim for a target of 51,500.

On the downside, the Bank Nifty found support at the 51,000 level, from which it bounced back. On the upside, the index faces resistance around the 51,350–51,500 levels. If it sustains above 51,350, we could see a strong upward move towards the 51,500–51,800 levels. The overall chart structure appears positive, especially after Thursday's close above 51,150. Traders are advised to maintain a strict stop-loss while trading to manage risk effectively.

Key Resistance: 51,350, 51,500

Key Support: 51,000, 50,800

Strategy: Buy on dips near the 51,000 level for a target of 51,350–51,500, with a stop-loss at 50,800 on a closing basis.

The Bank Nifty is currently trading within a range of 51,400 to 50,800. The index has yet to make a decisive move and has been underperforming relative to other indices. For a significant shift, the index needs to close above 51,400 or below 50,800. Until a decisive breakout occurs, the index is expected to continue trading within this range.

Key Resistance: 51,400, 51,750

Key Support: 50,800, 50,500

Strategy: Buy one lot of the 51,400 strike Call and one lot of the 50,800 strike Put.