Nifty 50 and Bank Nifty Trading Outlook: Retaking Key Milestones

Market Remains Range-Bound

The Indian stock market continues to trade within a narrow range, with the Nifty 50 index struggling to decisively break out of the 23,100-23,700 range. Momentum indicators suggest a lack of clear direction, with market breadth weak and the index failing to build on its strength.

Nifty 50 Falls 50 Points

On June 5, the Nifty 50 fell 50 points to 23,367, while the Bank Nifty climbed 188 points to 54,496. Market breadth was weak, with about 1,615 shares declining against 1,384 advancing shares on the National Stock Exchange.

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Technical Analysis

According to Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One, the Nifty 50 index is likely to attempt to reclaim the 23,500-23,550 zone, with a decisive move above this zone opening the door for 23,650. However, a fall below 23,300 could drag the index towards the 23,100-23,000 levels.

Key Resistance and Support

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• Key Resistance: 23,600, 24,000
• Key Support: 23,100, 22,700

Strategy

Buy Nifty Futures on dips around 23,200-23,100, with a stop-loss of 23,100, and book profit near the 23,550-23,600.

Rajesh Palviya, Senior Vice President Research (Head of Research) at Axis Securities, notes that the Nifty 50 index has formed a bearish candle with a long lower shadow, indicating strong buying interest near the lower band of the April 8 bullish gap at 23,154. For bulls to regain control, the index needs to reclaim the 20-day SMA at 23,645 decisively.

Key Resistance and Support

• Key Resistance: 23,500, 23,650
• Key Support: 23,200, 23,100

Strategy

Sell Nifty Futures around 23,450, with a stop-loss of 23,550, targeting 23,200-23,100.

Anshul Jain, Head of Research at Lakshmishree Investments, notes that the Nifty 50 index has ended the week with a bearish candle but managed to hold above the lows of the previous three weeks, signalling continued consolidation rather than a decisive trend.

Key Resistance and Support

• Key Resistance: 23,445, 23,650
• Key Support: 23,262, 22,941

Strategy

Buy Nifty Futures on breakout above 23,445 for target of 23,650 with stop-loss below 23,400.

Bank Nifty Delivers Resilient Performance

The Bank Nifty index delivered a resilient performance during the recent week, overcoming early weakness and gradually recovering from a key support zone. Sustained buying interest aided the rebound, enabling the index to regain lost ground.

Key Resistance and Support

• Key Resistance: 54,800, 55,500
• Key Support: 53,900, 53,000

Strategy

Buy Bank Nifty Futures on dips around 53,900-53,800, with a stop-loss of 53,200 and book profits near 55,000.

Rajesh Palviya, Senior Vice President Research (Head of Research) at Axis Securities, notes that the Bank Nifty index is approaching a key resistance near 55,000, marked by the medium-term downward-sloping trendline from its all-time high.

Key Resistance and Support

• Key Resistance: 54,650, 54,800
• Key Support: 54,100, 53,800

Strategy

Sell Bank Nifty Futures around 54,700 with a stop-loss of 54,850, targeting 54,200-54,000.

Anshul Jain, Head of Research at Lakshmishree Investments, notes that the Bank Nifty index has remained relatively resilient through the week, closing near the highs of the range and forming a bullish hammer type candle on the weekly chart.

Key Resistance and Support

• Key Resistance: 54,865, 55,537
• Key Support: 54,000, 53,800

Strategy

Buy Bank Nifty Futures above 54,865 for target of 55,537, with a stop-loss below 54,500.