Bank Nifty Prediction for January 7, 2025: Focus on Resistance Levels

The Bank Nifty index has seen a slight recovery after a notable drop earlier in the week. Currently, the index is trading at around 50,190, reflecting an increase of 0.5 percent. An important aspect to monitor is the advances to declines ratio, which is noted at 10:2. This ratio needs to remain strong for the index to continue its upward trajectory today.

Current Bank Nifty Outlook

The support level at 49,800 has proven to be robust. For the Bank Nifty index to continue its progression, it is crucial to achieve a substantial follow-up rise from this level. If momentum builds, there is potential for the index to climb to 51,000 and possibly reach 52,000 during the week.

A significant drop below 49,800 could indicate renewed selling pressure on the index. While this scenario is less likely, it could lead to a decline towards the 49,000 mark or lower.

Analysis of Bank Nifty Futures

Currently, Bank Nifty's January futures are at 50,385, with an increase of 0.45 percent noted. Support in the range of 50,000-49,900 has displayed strength, while intraday support is identified around 50,200. On the resistance front, the level to watch is 50,650. A breach above this resistance will open the pathway for the index to advance to levels between 51,500 and 52,000 this week.

In the event that the futures contract drops below 49,900, it may trigger further selling, leading to possible declines to around 49,100-49,000. Nevertheless, such a downturn is seen as unlikely at this time.

Trading Strategy Recommendations

Investors are advised to consider a long position on a break above 50,650. A stop-loss should be set at 50,420. Once the contract reaches 50,950, one can adjust the stop-loss to 50,850. As the price moves up to 51,120, further adjustment of the stop-loss to 51,050 is advisable. The optimal exit point for longs is recommended at 51,200.

Supports: 50,000, 49,900
Resistances: 50,650, 51,500

BankNifty, Trading, Analysis