Nifty 50 and Bank Nifty Poised to Extend Gains as Oil Prices Retreat

Nifty 50 and Bank Nifty Outlook

Key Figures

• Nifty 50: 23,409
• Bank Nifty: 54,413
• Oil prices: near $100 a barrel

Market Analysis

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The Nifty 50 and Bank Nifty are expected to receive support from easing oil prices, which may lead to further short covering and push the benchmark index higher in the upcoming session. However, technical indicators remain strongly favourable for bears, and the VIX remains elevated, casting doubts over the sustainability of the uptrend.

Nifty 50 Resistance and Support

• Resistance: 23,500-23,700, 24,000
• Support: 22,950-23,000, 22,468

Nifty 50 Outlook and Strategy

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According to market experts, the Nifty index is forming a lower top-lower bottom structure, indicating a downtrend in the short term. However, a pullback towards 23,700-24,000 is possible in the near term. The daily RSI bouncing back from the 24 level and a positive divergence on the hourly RSI indicate the possibility of a pullback.

• Resistance: 23,700, 24,305
• Support: 22,924, 22,468
• Strategy: Buy Nifty Futures with a stop-loss of 22,950, targeting 23,700 and 24,000 on the upside.

Bank Nifty Outlook and Positioning

The Bank Nifty closed well in positive territory, managing to close above the 54,000 level. This indicates a good chance of short covering as long as this level holds in the short term.

• Resistance: 56,000, 57,000
• Support: 54,000, 53,500
• Strategy: Buy Bank Nifty Futures at 54,400 and add on dips near 54,000, with a stop-loss below 53,500, targeting 56,000 and 57,000.