By Vineet Kumar 
Trading Plan: Nifty 50 and Bank Nifty Analysis for Monthly F&O Expiry
The markets are gearing up for the monthly F&O expiry, with Nifty 50 and Bank Nifty holding onto key levels. Let’s break down the key insights and strategies for the day:
Nifty 50 Outlook
Nifty 50 closed 0.3% higher on November 27, maintaining a 250-point range for the third consecutive session. Despite this range-bound movement, a decisive breakout or breakdown may provide trading opportunities.
Current Range: 24,100–24,350
Key Resistance Levels:
Immediate Resistance: 24,350–24,400
Major Resistance: 24,500, 24,600, and 24,800 (50% Fibonacci retracement).
Key Support Levels:
Immediate Support: 24,160–24,140
Strong Support: 24,000–23,900
Expert Viewpoint:
Vidnyan Sawant of GEPL Capital highlights that Nifty sustaining above 24,350 could push it towards 24,550 and 24,800, marking a positive breakout. However, below 24,100, traders should watch for a potential decline towards 23,900.
Trading Strategy:
1. Breakout Play: Buy Nifty Futures above 24,600 with a stop-loss at 24,300, targeting 25,200.
2. Range Play: Buy Nifty Futures near 24,160 with a stop-loss at 24,000, targeting 24,400.
Technical Indicators:
Momentum Indicator: Negative crossover on hourly charts, suggesting consolidation might continue.
Daily Chart Insight: Holding above the 20-day EMA, signaling underlying bullishness.
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Bank Nifty Outlook
Bank Nifty added 110 points to close at 52,302 on November 27, holding above its critical support zone.
Key Resistance Levels:
Immediate Resistance: 52,600–52,800
Major Resistance: 53,500–54,200
Key Support Levels:
Immediate Support: 52,000–51,800
Strong Support: 50,800–49,600
Expert Viewpoint:
Shitij Gandhi of SMC Global Securities emphasizes that Bank Nifty faces strong resistance near 52,500. A breakout above this level could fuel momentum toward 53,500. On the downside, dips toward 52,000–51,800 may be buying opportunities.
Trading Strategy:
1. Breakout Play: Buy Bank Nifty Futures above 52,600 with a stop-loss at 51,900, targeting 53,500.
2. Range Play: Buy Bank Nifty Futures near 52,000 with a stop-loss at 51,800, targeting 52,400.
Technical Indicators:
Momentum Indicator: Negative crossover on hourly charts indicates continued consolidation.
Daily Chart Insight: Holding above the 20-day EMA while consolidating within a multi-week range.
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Market Sentiment
The broader market is showing positive breadth, with advances significantly outpacing declines (1,729 vs. 743 on NSE). However, consolidation in Nifty and Bank Nifty suggests traders are awaiting fresh triggers before committing to major positions.
Conclusion
Both indices are at pivotal levels, and a decisive move could provide clarity on the next trend. Traders should closely monitor key levels, use tight stop-losses, and stay updated with global cues.
For more expert insights and trading strategies, visit TradingThought.com.
