Nifty Set to Extend Winning Streak: Key Levels to Watch and Trading Strategies
The Indian stock market has been on a roll, with the NSE Nifty 50 extending its gains for the fifth straight session on Wednesday. According to analysts, the index is likely to continue its winning streak in the coming session, with resistance seen at 25,100 levels.
Technical Analysis: Nifty Forms Strong Bullish-Bodied Candlestick
A strong bullish-bodied candlestick has been formed, indicating renewed strength in the index, said Hardik Matalia, a derivative analyst at Choice Broking. This is a positive sign for the market, and investors can expect the index to continue its upward momentum.
Key Levels to Watch: Support and Resistance
On the upside, resistance is seen at 25,100 levels, while on the downside, the benchmark equity index will find immediate support at 25,000, the analyst added. The index sustaining above Monday’s gap area (24631-24852) will keep the bias positive and will gradually open upside towards 25,250 levels in the coming sessions, said Bajaj Broking Research.
Bank Nifty: Consolidation Amid Stock-Specific Action
As far as Bank Nifty is concerned, charts formed a small bear candle, signalling consolidation amid stock-specific action. Buying demand in the last few sessions has emerged from the 100-day EMA, said Bajaj Broking. A key support area for Bank Nifty are 54,800 and 55,000 levels. A breach below 54,800 will open downside towards the 54,000 levels. On the higher side, resistance lies around the 56,000–56,300 range, the brokerage added.
Market Highlights: Nifty and Sensex Close in the Green
The benchmark equity indices closed in the green for the fifth straight session on Wednesday. The NSE Nifty 50 ended 69.9 points or 0.28% higher at 25,050.55 and the BSE Sensex closed 213.45 points or 0.26% up at 81,857.8. The Nifty recorded the longest winning streak since June 11, while the Sensex posted the best winning streak since April 23.
Indian Rupee Closes Weaker
The Indian rupee closed 5 paise weaker at 87.1 a dollar on Wednesday.
Trading Strategies for Indian Investors
With the Nifty set to extend its winning streak, Indian investors can consider the following trading strategies:
- Buy on dips: Investors can look to buy the index on dips, with a stop loss at 25,000 levels.
- Sell on rallies: Investors can look to sell the index on rallies, with a target at 25,100 levels.
It’s essential to keep a close eye on the key levels and adjust your trading strategies accordingly.
Conclusion
The NSE Nifty 50 is likely to continue its winning streak in the coming session, with resistance seen at 25,100 levels. Indian investors can consider the above trading strategies and keep a close eye on the key levels to maximize their returns.
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