Traders should keep a close eye on 17,315 on the Nifty: Ravi Nathani

Nifty

Last close: 17,412.90

The Nifty index is currently at a critical juncture, as technical charts reveal two crucial points for traders to consider in their trading strategies. The first key point is that if the index remains above the critical support level of 17,315, traders can expect a near-term bottom in place, indicating a bullish market sentiment.

This is a significant level for all bullish positions, as any break below this level may lead to a fresh round of selling, thereby creating a bearish market sentiment. Hence, traders must closely monitor this critical support level of 17315 to make informed decisions.

On the flip side, if the index manages to stay above the support level of 17,315, it could indicate a bullish market trend. In this scenario, traders can use the resistance levels of 17,625, 17,750, 17,925, and 18,090 as potential targets for profit booking.

However, if the index breaks below the support level of 17,315, traders must be cautious and closely monitor the situation to avoid any unexpected losses. The next support level on the charts is around 16,920, which could act as a major support zone for the index.

In conclusion, based on the price action charts, the best trading strategy has been suggested for near and short-term traders.

As the market is currently in a state of flux, traders need to be cautious and vigilant to make informed decisions based on the support and resistance levels mentioned above. By keeping a close eye on the critical support level of 17,315, traders can anticipate the potential market trend and adjust their trading strategies accordingly.

Bank Nifty

Last close: 40,485.45

The current state of the Bank Nifty Index is indicative of a near-term bearish trend, and traders should exercise caution when making trading decisions. It is worth noting that a strong support level on the charts is expected around the 40,336 mark, and any trades below this level may signal a further downward trend, leading to potential support levels at 40,040 and 39,836.

A close below 39,800 may trigger complete bearishness in the charts, with the next support level being observed at 39,080. It is important for traders to keep these critical support levels in mind and closely monitor the market trends to make informed trading decisions.

On the other hand, if the Bank Nifty Index manages to close above 40,880, traders can expect the index to turn bullish, with potential resistance levels observed at 41,165, 41,520, and 42,000.

In summary, traders should remain vigilant and cautious when trading in the Bank Nifty Index and pay close attention to the critical support and resistance levels mentioned above to make informed trading decisions.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).