Market Outlook

Nifty 50 and Bank Nifty Outlook

The equity market is expected to experience a relief rally in the upcoming session due to the de-escalation of tensions in the Iran conflict and falling oil prices. However, the sustainability of this rally is a key area to watch.

Key Levels

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• Nifty 50: Resistance - 23,000-23,300, Support - 22,500-22,400
• Bank Nifty: Resistance - 53,000-53,500, Support - 51,000

Technical Analysis

The Nifty 50 has broken below its yearly pivot support, indicating continued selling pressure and weak sentiment. However, it is approaching a crucial rising trendline that has been intact since 2021. The 22,500 zone is a key level to watch in the upcoming sessions.

Strategy

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• Buy Nifty Futures: Near 22,400, with a stop-loss of 22,100, targeting 23,000
• Sell Nifty Futures: Below 22,400, with a stop-loss of 22,800, targeting 21,700
• Sell Nifty Futures: On a bounce towards the 22,850-23,050 zone, with a stop-loss of 23,350, targeting 22,000-21,800

Bank Nifty Strategy

• Buy Bank Nifty Futures: Near 51,000, with a stop-loss of 50,800, targeting 52,700
• Sell Bank Nifty Futures: Below 51,000, with a stop-loss of 51,500, targeting 50,800

India VIX

The India VIX has jumped above the previous swing high of 24.5 and is currently at 26.73, indicating a rise in fear. Historically, whenever it has moved beyond the 25 level, it has subsequently surged to 32-plus levels.