Nifty & Bank Nifty Insights by Hrishikesh Yedve: Key Levels & Strategy

Analysis by Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

“The domestic benchmark indices showed resilience on Monday, starting positively and continuing to reflect the influence of global cues. Nifty started the day on a flat to positive note and registered a new record high of 25,445.70 but was unable to sustain above it, resulting in profit booking. Ultimately, the index settled the day on a marginal positive note at 25,384.

Technically, the small red candle formation on the daily chart signals some short-term hesitation, but the fact that Nifty remained above the 25,335 (breakout level of the rounding bottom pattern) suggests underlying strength.  The 21-DEMA support is currently placed near 25,020. As long as Nifty stays above 25,000, a "buy on dips" strategy is advisable, with the potential for the index to test 25,600 in the short term.

Bank Nifty started the day on a strong note and managed to close higher at 52,153 despite market volatility. The index sustained above the cup-and-handle breakout, which indicates potential strength. In the short term, Bank Nifty could test levels of 52,800–53,000, with a medium-term target of 53,800. The 21-DEMA support is currently placed near 51,310. Therefore, a “buy on dips” strategy is recommended for Bank Nifty as long as it stays above 51,300.”

Trading Perspective

The current analysis provided by Hrishikesh Yedve on Nifty and Bank Nifty reflects ACMIIL's expertise in market research. His focus on technical levels such as the 21-Day Exponential Moving Average (DEMA), breakout patterns like the rounding bottom and cup-and-handle, and his “buy on dips” strategy exemplifies the company's ability to navigate market volatility while offering clear, data-backed recommendations.

The broader market context has been shaped by a range of global and domestic factors, including inflation concerns, geopolitical tensions, and monetary policy decisions, which have influenced investor sentiment. Despite these uncertainties, the Indian market, as represented by Nifty and Bank Nifty, has shown strength, suggesting a bullish outlook for the near term.

Asit C. Mehta Investment Intermediates Ltd (ACMIIL) is one of India's leading full-service financial firms, providing a wide range of services, including brokerage, investment advisory, wealth management, and research. Founded by industry veteran Asit C. Mehta, the company has built a strong reputation for offering insightful market analysis and strategic guidance, catering to both retail and institutional investors.

Over the years, ACMIIL has been at the forefront of providing cutting-edge research and in-depth market analysis. The firm's commitment to delivering high-quality services has earned it a loyal clientele base, including individual investors, corporates, and institutional entities.

Hrishikesh Yedve, the Assistant Vice President (AVP) of Technical and Derivatives Research at ACMIIL, is a seasoned market analyst with extensive expertise in technical analysis, derivatives, and market trends. His analytical approach focuses on providing actionable insights by interpreting price movements, chart patterns, and technical indicators to guide investors through complex market scenarios.