Can Nifty, Bank Nifty break out of their rangebound trading pattern?

The Nifty 50 and Bank Nifty closed moderately lower on December 24 after a rangebound trade for the second consecutive session. To determine if they can break out of their rangebound trading pattern, let's analyze their immediate ranges and key levels as highlighted by market experts.

Lower Band Break: If Nifty breaches 23,650, it could drop to 23,500 and then to 23,263 (November low).

Upper Band Break: If Nifty moves above 23,900, the next level to watch is 24,100.

Current Performance:

December 24 Close: Nifty 50 closed at 23,728, down by 26 points.

Market Sentiment:

FPI Activity: Foreign Portfolio Investors (FPIs) were net sellers last week, adding a cautious sentiment.

Volatility: Likely to dominate until FPIs resume buying.

Support and Resistance:

Strong Resistance: 23,800–24,000 (significant call writing observed).

Robust Support: 23,500–23,600 (significant put writing).

Expert Opinions:

Dhupesh Dhameja (Samco Securities): Highlights a rangebound and indecisive market. Suggests trading below 23,650 with a stop-loss above 23,850.

Ashish Kyal (Waves Strategy Advisors): Emphasizes a bearish trend until prices close above 23,870. Suggests short positions below 23,630 targeting 23,530.

Vidnyan S Sawant (GEPL Capital): Recommends selling Nifty Futures below 23,580 targeting 23,200.

Preeti K Chabra (Trade Delta): Suggests conditional trades based on the breach of key levels 23,871 or 23,692.

Nifty Trading Strategy

Strategy Below 23,650: Sell with a stop-loss above 23,850, targeting 23,400–23,350.

Strategy Above 23,900: Buy with a target of 24,100.

Bank Nifty Analysis

Current Range: 50,600–51,600

Key Levels to Watch:

Lower Band Break: A decisive break below 50,600 could lead to further downside.

Upper Band Break: Above 51,600, Bank Nifty may find strength.

Current Performance:

December 24 Close: Bank Nifty closed at 51,233, down by 85 points.

Market Sentiment:

Bullish Momentum: Waning, characterized by small candlestick bodies.

Psychological Support: 51,000 is critical; a breach could intensify selling pressure.

Support and Resistance:

Strong Resistance: 51,700–51,800 (significant call writing observed).

Key Support Levels: 51,000, 50,500, 50,000.

Expert Opinions:

Dhupesh Dhameja (Samco Securities): Suggests selling below 51,100–51,050 targeting 50,500–50,300.

Ashish Kyal (Waves Strategy Advisors): Advises short positions below 51,000 with targets of 50,700 and 50,513.

Vidnyan S Sawant (GEPL Capital): Recommends buying Bank Nifty futures above 52,000 with a target of 53,000.

Preeti K Chabra (Trade Delta): Suggests conditional trades based on the breach of key levels 51,137 or 51,417.

Bank Nifty Trading Strategy

Strategy Below 51,100: Sell with a stop-loss above 51,400, targeting 50,500–50,300.

Strategy Above 51,600: Buy with a target of 52,000.

Summary

Nifty 50: Key levels to watch are 23,650 and 23,900. A breach of these levels on either side will likely set the direction for the market.

Bank Nifty: Key levels to watch are 50,600 and 51,600. The breakout from this range will provide a clear direction.

Traders should monitor these levels closely and adjust their strategies based on market movements, keeping stop-losses tight to manage risk effectively.