Ravi Nathani expects Nifty to hit 18,400; cautions on Pvt Bank

Nifty 50

Bias: Bullish

Last close: 18,027.65

Last week, the Nifty index, gave a fresh breakout on daily charts, which is a technical analysis term that refers to a move above a level of resistance or a move below a level of support.

This breakout indicates that the market is showing signs of strength and that utilizing a correction-based trading strategy, which involves buying stocks at lower prices during market corrections, would likely be the most advantageous approach for traders.

Additionally, based on analysis and market indicators, it is expected that there will be strong support in the range of 17,925 to 18,000, which means that if the market were to fall to those levels, it would likely bounce back up.

Furthermore, the target for this upward trend is projected to be 18,400, meaning that the market is expected to reach that level in the near future.

Intraday No Trade Zone: 17,995 - 18,060

Expected Intraday Resistance: 18,075 – 18,110 - 18,215

Expected Intraday Support: 17,975 – 17,925 – 17,825

NIFTY Private Bank Index

Bias: Use rally to book profits

Last close: 21612.95

According to a recent analysis of the Nifty Private Bank Index, a significant trend line has been identified. By connecting the lifetime high of 22,492 and the previous high of 22,223, a sloping trend line can be seen on the near-term charts.

This trend line serves as a strong resistance level, meaning that if the market were to reach this level, it would likely see a significant amount of selling pressure.

Additionally, the analysis also revealed another trend line by connecting the low of 21,060 and 21,273, which forms a sloping trend line upwards. This trend line serves as a lower trend line, indicating a level of support for the market.

When these trend lines are connected, it forms a triangle shape pattern on the charts. This pattern is significant as it suggests that the existing trend on a larger time frame may come to an end or continue.

Overall, based on the index, pattern, and technical indicators such as the relative strength index (RSI) and moving averages (MA), it is not very likely for a bullish rally to continue in the near future unless a breakout is observed.

Therefore, it is recommended to use the rally to exit all long positions near the expected resistance level of 22,000.

Intraday No Trade Zone: 21,570 - 21,655

Expected Intraday Resistance: 21,725 – 21,796 - 21,900

Expected Intraday Support: 21,540 – 21,449 – 21,336

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