Bank Nifty Prediction for January 7, 2025: Resistance Is Key

The Bank Nifty index has shown some recovery today, marking a slight increase following a sharp decline earlier in the week. Currently, the Bank Nifty index is trading at 50,190, reflecting a rise of 0.5 percent. The ratio of advances to declines stands at 10:2, indicating that the market is moving in a positive direction. For this trend to continue, it's critical to maintain this momentum throughout the trading day.

Current Bank Nifty Outlook

The support level at 49,800 has proven to be robust, holding up well against selling pressure. It is essential for the Bank Nifty index to achieve a strong follow-through rise from this level. If it can do so, we may see the index climb to a target ranging between 51,000 and 52,000 within the week.

Conversely, if the index breaks below 49,800, it could face renewed pressure, possibly driving it down to levels as low as 49,000 or further. However, such a drop currently seems unlikely in light of the prevailing market conditions.

Analysis of Bank Nifty Futures

The Bank Nifty January futures are currently priced at 50,385, reflecting an increase of 0.45 percent. The strong support zone lies between 50,000 and 49,900, which has provided stability to the index. On the intraday front, immediate support is identified around the 50,200 mark, while resistance is seen at 50,650. A breakout beyond this resistance level is pivotal; should this occur, it would open the path for a further ascent towards 51,500 and possibly 52,000 this week.

However, it is important to note that a decline below 49,900 would trigger a concerning sell-off, potentially sending the index down to the 49,100 to 49,000 range. Yet, such a significant decline remains an unlikely scenario based on current trends.

Recommended Trading Strategy

Traders should consider going long if the index breaks above the critical resistance level of 50,650. A stop-loss should be set around 50,420 to manage risk effectively. As the contract price rises, it's advisable to adjust the stop-loss to 50,850 upon reaching 50,950. When the price hits 51,120, the stop-loss can be further elevated to 51,050. An exit strategy should be executed around 51,200 to secure profits.

Support Levels: 50,000, 49,900

Resistance Levels: 50,650, 51,500

BankNifty, Trading, Analysis