Trading Plan: Will Nifty reclaim 23,900, Bank Nifty hit 10-day EMA of 51,400?

Nifty Trading Plan for January 2

The Nifty 50 and Bank Nifty kicked off the year 2025 on a positive note, forming bullish candlestick patterns for another session on January 1. The sentiment turned somewhat optimistic for immediate term, with the Nifty 50 climbing above its 200-day EMA of 23,700. As long as the index trades above this level, the immediate resistance zone is at 23,900–24,000, followed by 24,300 as the next hurdle. However, 23,500 is expected to act as a key support area. For the Bank Nifty, sustaining above 51,000 would target the 51,400–51,600 zone, with 52,000 as a key resistance. On the downside, 50,500 remains a strong support level, according to experts.

On Wednesday, January 1, the Nifty 50 rose 98 points to close at 23,743, while the Bank Nifty gained 200 points to close at 51,061. Market breadth was positive, with 1,876 shares advancing compared to 637 declining shares on the NSE.

On the daily charts, the Nifty has been hovering around the 200-day Exponential Moving Average (23,694) for the past eight trading sessions. The hourly momentum indicator shows positive divergence and has triggered a buy signal. Given that the Nifty is trading at a crucial long-term support, the momentum setup suggests a likely relief rally towards 24,000. On the downside, the 23,560–23,540 zone will act as a critical support area from a short-term perspective.

Key Resistance: 23,880, 23,920

Key Support: 23,684, 23,670

Strategy: Buy Nifty Futures with a stop-loss of 23,640, targeting 23,950–24,000.

The Nifty index found strong demand near the 23,400 level, forming a long-legged Doji candle on the weekly charts. On the daily timeframe, the index has remained rangebound between 23,400 and 24,000. Additionally, it is trading below the 200-day SMA at 23,900, signaling a bearish bias in the short to medium term. The RSI indicator hovering near the 40 mark further reflects weakness in momentum.

Key Resistance: 24,000, 24,400

Key Support: 23,400, 23,000

Strategy: Sell Nifty Futures near 23,900, with a stop-loss of 24,100, targeting 23,400.

Indian equity markets began the new calendar year positively, with benchmark indices closing higher. Positive divergence in the RSI supported the gains. For the upward momentum to continue, the Nifty needs to break through the resistance zone between 23,850 and 23,900 (spot basis). On the downside, the 23,400–23,300 zone is likely to act as a major support area. Markets are expected to remain volatile, trading in a broader range of 23,300–23,900.

Key Resistance: 24,100, 24,200

Key Support: 23,700, 23,500

Strategy: Buy Nifty Futures on dips near 23,700, with a stop-loss below 23,500, targeting 24,000.

Bank Nifty held above the 200-day Moving Average (50,482) and bounced back to close positively. On the hourly chart, the index has formed a Hammer pattern, indicating buying interest at lower levels and the formation of a short-term bottom. The hourly momentum indicator has a positive crossover, signaling a buy opportunity. A pullback toward 52,000 is highly probable.

Key Resistance: 51,600, 51,700

Key Support: 50,900, 50,800

Strategy: Buy Bank Nifty Futures with a stop-loss of 50,600, targeting 51,600–52,000.

The Bank Nifty has formed a Spinning Top pattern on the weekly charts, indicating market indecision. On the daily charts, the index has consistently respected its 200-day SMA, highlighting strong demand at lower levels. The overall price action suggests rangebound movement in the short to medium term.

Key Resistance: 52,000, 53,200

Key Support: 50,500, 49,700

Strategy: Buy Bank Nifty Futures above 52,000, with a stop-loss of 51,500, targeting 53,200.

The banking index has entered its second week of consolidation, with current indicators suggesting that this trend will likely persist. Technically, the index is expected to fluctuate within the range of 50,500 to 52,000 (spot basis) over the coming week. A breakout beyond this range could determine the index's future direction.

Key Resistance: 51,800, 52,200

Key Support: 51,100, 50,800

Strategy: Buy Bank Nifty Futures on dips near 51,200, with a stop-loss below 50,800, targeting 51,800.