Trading Plan: Will Nifty Surpass 24,300, and Can Bank Nifty Reclaim 51,600?
The Nifty 50 made a decisive move past its key resistance at 23,800 last week, signaling a strong rebound. If the index manages to sustain above this level, 24,000 will be the immediate target, followed by critical resistance zones at 24,300–24,400, corresponding to the 100-day and 50-day EMAs. On the downside, the 200 DEMA at 23,540 serves as an important support level, with 23,260 (last week’s low) as a crucial fallback support.
The markets displayed resilience on November 22, rallying sharply from oversold conditions. Short-covering contributed to the benchmark indices posting their largest single-day gains since June. The Bank Nifty, too, rebounded strongly, forming a long bullish candle after a hammer-like pattern, potentially paving the way for a rally towards 51,600 and 52,100. On the downside, 50,500 is a solid support level.
Key Market Performance (November 22)
Nifty 50: Soared 557 points (2.4%) to close at 23,907.
Bank Nifty: Gained 763 points (1.51%) to settle at 51,135.
Market Breadth: Positive, with 1,728 advancing shares versus 727 declining ones on the NSE.
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Expert Insights and Strategies
Nifty Outlook
1. Rajesh Palviya (Axis Securities):
Sustaining above 24,000 could trigger buying, pushing the index towards 24,300–24,600.
Key support lies at 23,500, with downside targets at 23,300–23,000 if breached.
Key Resistance: 24,200, 24,400
Key Support: 23,750, 23,550
Strategy: Buy Nifty around 23,800, with a stop-loss at 23,650, and target 24,300.
2. Osho Krishan (Angel One):
The RSI shows a positive crossover, aligning with the 200 DSMA, supporting a bullish medium-term view.
However, the lower highs pattern remains a concern, warranting caution until a decisive move above 24,000 is achieved.
Key Resistance: 24,000, 24,050
Key Support: 23,600, 23,500, 23,350
Strategy: Buy Nifty on dips to 23,600–23,500, with a stop-loss at 23,350. Target: 24,100.
3. Vinay Rajani (HDFC Securities):
A large bull candle on the weekly chart indicates a short-term trend reversal. Upside targets include 24,179 and 24,400 (Fibonacci extension).
Key Resistance: 24,179, 24,400
Key Support: 23,532
Strategy: Buy Nifty November Futures near 23,900, with a stop-loss at 23,700, and target 24,200.
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Bank Nifty Outlook
1. Rajesh Palviya (Axis Securities):
Bank Nifty formed a bullish candle last week, indicating solid support at lower levels. Sustaining above 51,300 could lead to gains towards 51,800–52,500.
Key Resistance: 51,400, 51,700
Key Support: 50,850, 50,600
Strategy: Buy Bank Nifty near 51,000, with a stop-loss at 50,750, and target 51,450–51,600.
2. Vinay Rajani (HDFC Securities):
The Bank Nifty rebounded 1,500 points from its recent swing low of 49,787, forming higher tops and bottoms. Immediate resistance lies at 51,700, aligned with a downward-sloping trendline.
Key Resistance: 51,700, 52,494
Key Support: 50,500, 49,787
Strategy: Buy Bank Nifty November Futures near 51,100, with a stop-loss at 50,600, and target 51,700.
3. Osho Krishan (Angel One):
While the index remains in a consolidation zone, the 200 DSMA offers robust support. A breakout beyond 51,440 could provide relief, but the key hurdle remains at 52,300–52,500.
Key Resistance: 51,450, 51,500, 52,300
Key Support: 50,600, 50,500, 50,100
Strategy: Buy Bank Nifty near 50,600–50,500, with a stop-loss at 50,200, and target 51,500.
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Conclusion
Both Nifty and Bank Nifty exhibit bullish potential if key resistance levels are surpassed. Traders are advised to monitor these levels closely while maintaining disciplined stop-losses. With the Nifty targeting 24,300 and Bank Nifty aiming for 51,600, a cautious but optimistic approach could yield favorable results.
