Ravi Nathani shares key levels on Nifty, Nifty Bank indices for Friday

18,125 will trigger some strength for bulls on Nifty50 index whereas the expected targets would be 18,180 - 18,225 - 18,300

NIFTY CMP: 17,992.15

As suggested in January 5th article, Nifty traded exactly within the mentioned range and closed just above the important support level of 17,990.00. The Nifty index's intra-volatility was 228 points and it managed to recover 100 points from the low, in the last half-an-hour of trade. Short covering/buying was witnessed in FMCG, IT, Energy, and Financial names which helped the Index close with only 50-point cut and just below 18,000 level. Since the start of this week, Nifty is trading broadly within the range of 18,300 – 17,800. Trade above or below the said range will set the next tone of action for the short term.

Intraday Expectation: Sharp recovery from the lows suggests that 17,880 will play a very important support level for the coming days and this would also be considered a fresh stop loss for all long positions. On the higher side, 18,125 will trigger some strength for bulls whereas the expected targets would be 18,180 – 18,225 – 18,300.

Expected Intraday Resistance Levels: 18,125 / 18,225 / 18,350

Expected Intraday Support Levels: 17,940 / 17,880 / 17,765

BANK NIFTY INDEX: CMP 42,608.70

For the last two consecutive days, The Nifty Bank Index has underperformed. From the resistance levels of 45,600, the index has corrected more than 1,200 points and has given a close below the important support levels. This will trigger some more pain in the Index which has been witnessed by the underperformance of private banks and NBFCs.

Near Term: In days to come, if January 5’s low of 42,300 gets violated, then Bank Nifty will see next support around 42,000 – 41,800. Underperformance from private banks would be witnessed once again whereas PSUs might consolidate with flat to mild negative bias. On the higher side, resistance will be witnessed around 42,800, followed by 43,100. However, I expect Bank Nifty to trade in a flat range for some time. Therefore one must strictly take intraday short or long positions only around the below-mentioned resistance & support levels.

Expected Intraday Resistance Levels: 42,805 / 43,000 / 43,136 / 43,480

Expected Intraday Support Levels: 42,350 / 42,250 / 41,966 / 41,800

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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal.