The Bulls staged a healthy performance for the third consecutive session, taking full control over Dalal Street from the Bears. The benchmark indices gained 2 percent on June 7, witnessing a new all-time closing high. Analysts expect the Nifty 50 to hit 23,500-23,600 in the coming sessions, provided it holds 23,000, while the Bank Nifty is likely to climb over the 50,500 mark, followed by 51,000.

The Nifty 50 jumped 469 points or 2.05 percent to 23,290, while the Bank Nifty rose 511 points or 1.04 percent to 49,803 on Friday. About 1,915 shares advanced, and 387 shares declined on the NSE.

Nifty Outlook and Strategy

Nandish Shah, Senior Technical and Derivative Analyst at HDFC Securities

In the last three sessions, the Nifty recouped all the losses witnessed on June 4 and gained 6.42 percent, which is the highest three-session rise since February 2021. The trend of the Nifty turned positive as it surpassed the crucial resistance of 22,800 and sustained above it. The previous resistance of 22,800 is now expected to interchange its role as support going forward. The positional target for Nifty is seen at 23,900 odd levels, which happens to be 78.6 percent Fibonacci extension levels of the major swing registered post-March 2020. However, for the short term, 23,500 could offer near-term resistance.

Key Resistance: 23,500, 23,900

Key Support: 22,800, 22,500

Strategy: Buy Nifty near 23,100, target at 23,500

Stop-Loss: 22,800

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

The chart pattern suggests that if Nifty crosses and sustains above the 23,400 level, it would witness buying, leading the index towards 23,500-23,800 levels. However, if the index breaks below the 23,000 level, it would witness selling, taking the index towards 22,800-22,600. For the week, we expect Nifty to trade in the range of 23,700-22,600 with a positive bias. The daily and weekly strength indicator RSI is moving upwards and is quoting above its reference line, indicating a positive bias.

Key Resistance: 23,400, 23,550

Key Support: 23,000, 22,800

Strategy: Buy Nifty near 23,200-23,150, with the target of 23,500-23,600

Stop-Loss: 23,000

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One

Nifty positioned itself above all the significant EMAs, slightly above the higher band of the ‘Rising Channel’, showcasing an inherent bullish quotient. The macro data suggests a buoyant undertone, and going forward, global developments could play a crucial role in dictating the intermediate trend for our markets. Meanwhile, one should note that our markets have witnessed a worthy swing of nearly 2,000 points and now might attract some consolidation before setting up the next leg of the rally; hence, keeping a pragmatic approach is advisable.

On the options front: The highest open interest concentration is at the 23,000 strike Put, while scattered piling among Call writers was seen from 23,500-23,700 strikes on an immediate basis.

Key Resistance: 23,500

Key Support: 23,000, 22,800

Strategy: Buy on dips at 23,000 and book the profit near the resistance zone of 23,500

Stop-Loss: 22,750

Bank Nifty - Outlook and Positioning

Nandish Shah, Senior Technical and Derivative Analyst at HDFC Securities

In the last three trading sessions, Bank Nifty regained the bullish momentum and gained 8 percent from the June 4 lows, closing on a strong wicket. The short-term trend turned positive as it closed above all important short-term moving averages. Indicators and oscillators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have turned bullish on the weekly charts. Immediate support for the Bank Nifty is placed around 49,000, where the 11-day Exponential Moving Average (EMA) is placed.

Key Resistance: 50,650, 51,100

Key Support: 49,000, 48,600

Strategy: Buy Bank Nifty near 49,500, target at 50,600

Stop-Loss: 49,000

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

The chart pattern suggests that if Bank Nifty crosses and sustains above the 50,000 level, it would witness buying, leading the index towards 50,500-50,700 levels. However, if the index breaks below the 49,500 level, it would witness selling, taking the index towards 49,200-49,000. For the week, we expect Bank Nifty to trade in the range of 50,700-49,000 with a positive bias.

Key Resistance: 50,000, 50,500

Key Support: 49,500, 49,200

Strategy: Buy Bank Nifty near 49,600, target 50,200-50,400

Stop-Loss: 49,300

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One

Bank Nifty is trading just shy of its prior all-time highs; the rate-sensitive index has lagged and hasn’t shown strength relative to its other benchmarks. A very pertinent development is the formation of a Hanging Man candle on its weekly charts, which suggests tentativeness regarding Bank Nifty. The formation of this candlestick pattern does suggest some caution, but it is also advisable to wait for further confirmation on the candlestick setup before making any decisive moves.

On the options front: The highest open interest concentration is at 50,000-51,000 strike Calls, suggesting the intermediate resistance range.

Key Resistance: 50,500, 50,800

Key Support: 48,700, 48,500

Strategy: Buy on dips at 49,000 and book profit near 50,500

Stop-Loss: 48,500