Chart suggests ‘Sell on rise’ strategy for the Bank Nifty

NIFTY 50 Index

Bias: Range-bound

Last close: 17,624.05

The trading strategy for the upcoming week entails specific levels for which traders ought to take note. The first noteworthy level is the No Trade Zone, which spans 17,700 to 17,550. This area suggests that traders should avoid initiating trades in this range as the market is currently stagnant.

Additionally, traders should pay attention to the expected resistance and support levels for the week, 17,836-18,000-18,125 and 17,475-17,300-17,125, respectively. These levels indicate a range in which the market is likely to experience heightened activity, with the potential for increased buying or selling pressure.

Further, the flat MACD and RSI signals suggest that there may be a period of consolidation before the expiry, followed by potentially volatile movements in one direction. These indicators provide insight into the market’s future trajectory and enable traders to make informed decisions regarding their positions.

BANK NIFTY Index

Bias: Sell on rise

Last close: 42,118

The upcoming week presents specific levels that traders should note when developing their trading strategy. Firstly, the No Trade Zone ranges from 42,310 to 42,916. This area indicates that traders should avoid initiating trades within this range as the market is currently stagnant, and there is no clear indication of price movements.

Additionally, traders should pay attention to the expected resistance and support levels for the week, 42,615-42,950-43,600 and 41,780-41,350-40,700, respectively. These levels suggest that the market is likely to experience increased buying and selling pressure around these zones, which can provide an opportunity for traders to enter or exit positions.

Moreover, the RSI is currently falling, while the Stochastic is flat and placed in the oversold zone. This indicates that a correction is likely around the resistance levels, and traders should consider implementing a sell-on-rise strategy.

In other words, traders should sell their positions when prices rise to the expected resistance levels and aim to capitalize on the anticipated price correction.

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