Virendra Kumar of CNBC-Awaaz has described important figures and trading levels regarding Nifty’s strategy. According to him, trading should be done keeping in mind the major resistance (barrier) and base (support) level in the market.
Important support and resistance level of Nifty
- First Resistance: 23,558 – 23,632
- Big resistance: 23,667 – 23,666 (50 DEma) and 23,702 – 23,745
- First Base: 23,287 (20 Dema) – 23,338
- Big Base: 23,110 – 23,166 – 23,233
Uncertainty continues in market after budget
Virendra Kumar said that even after the budget, the market could not make a clear direction. The lower level was 20 Dema and the highest level 200 Dema.
- Fiis (foreign investors) also sold on the budget day, which kept the Nifty pressure.
- There was no change in the index short, the net short was 1.74 lakhs.
- 23,500-23,600-23,700-level call writers dominate, which makes it difficult to move upwards.
- 200 Dema is located at 23,632, which will serve as a strong resistance.
- 23,300-23,200-23,100 zones have seen heavy put writing, which can provide support here.
Trading Strategy: When to buy and when to sell?
- If the Nifty remains 23,338 (20 Dema) and above 23,287, then shopping should be done.
- Follow the purchase strategy in the fall, but it looks difficult to go above 23,632 (200 Dema).
- If the support of 23,338 / 23,287 breaks down, a major decline is possible.
- In such a situation the Nifty may fall to 23,166 and 23,110.
Strategy on Nifty Bank: Know the major level and trading plan
Virendra Kumar has also given important indications for the Nifty Bank. He says that there will still be ups and downs in the banking sector, but some select banks are in strong position.
Important support and resistance level of Nifty Bank
- First Resistance: 49,739 – 49,919
- Big resistance: 50,031 – 50,233 (200/50 Dema)
- First base: 48,922 / 49,117 – 49,311
- Big Base: 48,570 – 48,689
The current status and strategy of the Nifty Bank
- Closing remained weak, but still the index is over 20 Dema.
- Axis Bank, IndusInd Bank, Kotak Bank and ICICI Bank are technically strong.
- HDFC Bank and SBI are not seeing a boom.
- There will be 1,690 – 1,710 important levels for HDFC Bank.
- The 50,000 level is a large supply zone for the Nifty Bank, where there will be a pressure of call writers and 50-200 Dema.
- Heavy open interest (OI) has been seen at 49,000, which can be a strong support.
Trading Strategy: How to invest in Nifty Bank?
- If the first base (49,117-49,311) declines, then there will be a chance of shopping there.
- If the first base breaks, the index can go down and go down to the second base (48,570–48,689).
- Make a strategy wisely, as heavy fluctuations in the banking sector are still possible.
