Nifty & Bank Nifty Insights for the Session
FIIs Positioning and Market Sentiment: FIIs’ net longs have seen a marginal improvement to 20%, indicating a slightly positive sentiment. However, the possibility of another steep fall cannot be ruled out entirely. As a result, the overall market sentiment for the session remains mildly bullish. A gapdown opening should be considered a buying opportunity for a potential bounce.
Nifty Option Chain Analysis: The Nifty option chain data suggests that the upside is likely capped at the 23,400 zones, with immediate support expected at 22,900 levels. The prevailing market view aligns with the notion that any gapdown should be utilized as a buying opportunity to capture a bounce towards the 23,300/23,400 zones. It is crucial to maintain a stop loss at 22,800 to manage downside risks effectively.
Key Levels for Nifty:
Resistance: 23,300 – 23,400
Support: 22,900
Stop Loss: 22,800
Strategy: Buy on dip, targeting 23,300/23,400 zones.
Bank Nifty Option Chain Analysis: The Bank Nifty option chain analysis continues to highlight a restrictive downside, with key support levels holding at 48,000/47,800 zones. Despite the limited downside, there is no significant trigger identified for a strong upside movement at present. This implies that a cautious range-bound play is likely to persist in the near term.
Key Levels for Bank Nifty:
Support: 48,000 – 47,800
Upside Potential: Limited without fresh triggers
Strategy: Range-bound cautious trading
Conclusion: For today’s session, the market outlook remains cautiously optimistic with an expectation of range-bound movement. Nifty presents a potential buying opportunity on dips with a target of 23,300/23,400 levels while maintaining a strict stop loss at 22,800. Bank Nifty is expected to stay within a narrow range unless a significant trigger emerges. Traders should approach the session with a mix of caution and optimism, leveraging key support and resistance levels to optimize their strategies.
