Nifty 50 and Bank Nifty Technical Analysis

Market Update

The Nifty 50 and Bank Nifty maintained their uptrend on February 23, with the Nifty 50 climbing 142 points (0.55 percent) to 25,713, while the Bank Nifty advanced 92 points to 61,264. Market breadth remained weak, with 1,581 shares under pressure compared to 1,361 rising shares on the NSE.

Nifty Outlook and Strategy

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• Jay Thakkar, Head of Derivatives and Quant Research at ICICI Securities, suggests that the Nifty is stuck within a range of 25,400-26,000 levels, requiring a breakout to have a further directional move.
• The IVs (implied volatility) have increased to 15.60 from 11.59, indicating a 34.5% jump and unusual volatility.
• Traders are advised to trade cautiously until the IVs cool off, and consider buying above the range or selling below the range.

Key Levels

• Nifty 50:

• Key Resistance: 25,900, 26,000, 26,300
• Key Support: 25,500, 25,100

• Bank Nifty:

• Key Resistance: 61,500, 62,000
• Key Support: 61,000, 60,500

Strategies

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• Buy Nifty Futures above 26,000 with a stop-loss below 25,700, targeting 26,300 and 26,500.
• Sell Nifty Futures below 25,400 with a stop-loss above 25,700, targeting 25,100 and 24,800.

Bank Nifty Outlook and Positioning

• Jay Thakkar, Head of Derivatives and Quant Research at ICICI Securities, suggests that the Bank Nifty has been outperforming the Nifty, with a strong support level at 60,000.
• The trend in the Bank Nifty has been upward, with a higher probability of an upward breakout.
• Short-term traders can buy on dips near 61,275 and 60,500 with a stop-loss below 60,000, targeting 61,500 and 62,500.

Key Levels

• Bank Nifty:

• Key Resistance: 61,500, 62,000
• Key Support: 61,000, 60,500