The S&P BSE Sensex and NSE Nifty 50 Indexes opened higher in today’s session led by gains in HDFC Bank, ITC, Reliance Industries, HDFC and Hindustan Unilever. The Nifty 50 Index touched high of 11,561.70 and a low of 11,519.50 in today’s session. Nifty 50 index closed below important psychological level of 11,500 in yesterday’s session amid rising crude oil prices and worries over June quarter earnings from Indian companies. Meanwhile, the Nifty has halted its correction at 11,485 level which is 61.80 per cent Fibonacci Retracement level of its previous up move from 11,108 to 12,103, Choice Broking said in a research report.
Here are trading tips (trading ideas) for Nifty and Nifty Bank Indexes:
“On a daily chart, the Nifty didn’t break its previous day’s low which is a positive sign for bounce back movement after giving a healthy correction towards 11,982 level,” Choice Broking said.
As per the ongoing chart structure of Nifty, the index may face resistance at 11,600 levels while downside support is at 11,450 levels, the Mumbai-based brokerage firm added.
As per the moving averages Nifty has 21-day exponential moving average (DEMA) placed at 11,755, 100-DEMA at 11,533 and 200-DEMA at 11,275.
Choice Broking has suggested three support and resistance levels for Nifty for trading perspective and these are as follows:
Support 1 for Nifty at 11,452 and resistance 1 at 11,570
Support 2 for Nifty at 11,405 and resistance 2 at 11,641
Support 3 for Nifty at 11,334 and resistance 3 at 11,688
Trading tips for Nifty Bank Index
The Bank Nifty has been trading below its 21-Day Moving Average which shows a negative rhythm in the Index. However, it has good support of its recent bottom which is placed at 30,220 level which suggests a bounce back move can be seen if Bank Nifty approaches the said level, Choice Broking said.
A daily momentum indicator on Relative Strength Index (RSI) is at 43.75 level with a negative crossover which points out for a negative breath in the Index. Based on the ongoing structure on a chart, we expect that the Bank Nifty may face resistance at 30,900 level while downside support comes at 30,220 level.
Choice Broking has recommended the following support and resistance levels for the Nifty Bank index:
Support 1 for Bank Nifty at 30,391 and resistance 1 at 30,691
Support 2 for Bank Nifty at 30,259 and resistance 2 at 30,859
Support 3 for Bank Nifty at 30,091 and resistance 3 at 30,991