Nifty 50 Trading Plan: Key Levels to Watch
The Nifty 50 negated the higher high–higher low structure of the previous three consecutive sessions, and the momentum indicators signal near-term consolidation, though the index held above all key moving averages. If the index decisively breaks the previous day’s low of 25,750, a fall toward 25,650–25,600 (20- and 100-day EMAs) can’t be ruled out. However, in case of a rebound, the 25,900–26,000 range may remain a key resistance zone.
Meanwhile, if the Bank Nifty sees a consolidation breakdown, the 60,250–60,000 levels are to be watched on the downside. However, decisively breaking out above 60,900 can open the door for 61,200 and then a record high, according to experts.
Nifty Outlook and Strategy
Dhupesh Dhameja, Derivative Research Analyst at Samco Securities, said, ‘Nifty came under pressure following heavy selling in the IT pack, opening gap-down but avoiding structural damage as it stabilised within a narrow intraday band. The index continues to defend the crucial 25,600–25,700 zone, where the 0.382 Fibonacci retracement and short-term moving averages converge, reinforcing it as a strong demand cluster.’
He added, ‘Repeated rejection near the psychological 26,000 mark highlights persistent overhead supply, keeping the broader tone sideways to mildly bearish. Options data shows aggressive Call writing at 26,000, establishing it as a formidable resistance, while Put positioning near 25,500 provides a cushion on declines. Until a decisive and sustained breakout above 26,000 materialises, the index is likely to remain range-bound, with a tactical sell-on-rise strategy favoured.’
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Bank Nifty – Outlook and Positioning
Dhupesh Dhameja, Derivative Research Analyst at Samco Securities, said, ‘Nifty Bank continues to outperform the benchmark, holding firm within a tight four-session range and signalling underlying strength. The index is steadily building a demand base in the 60,400–60,250 zone, reinforced by the 0.382 Fibonacci retracement and the 10-day moving average.’
He added, ‘Higher lows and sustained trading above short-term averages reflect constructive consolidation rather than weakness. Options positioning shows strong Put writing near 60,500, cushioning downside risk, while Call build-up at 61,000 caps immediate upside. The RSI near 60 indicates improving momentum.’
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Conclusion
In conclusion, the Nifty 50 and Bank Nifty are expected to remain range-bound in the near term. However, a decisive breakout above 26,000 or 61,000 could lead to a fresh upside expansion. Investors and traders should keep a close eye on the key levels and adjust their strategies accordingly.
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