Nifty in a narrow range between 23,300-23,500. How to trade this week

economictimes.indiatimes.com:

Nifty is stuck in a narrow range between 23300-23500, and a break on either side will lead to trending moves, says Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

“The underperformance of BankNifty is preventing Nifty from moving higher; for Nifty to break on the higher side, BankNifty must start performing. The undertone remains bullish, and one should adopt a buy approach on a breakout above 23500, targeting 23,800-24,000,” he says.

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Edited excerpts from a chat:

Nifty has rallied non-stop for the last 4 days to touch fresh record highs but has been trading within a broad range of 23300-23500. Do you see higher chances of a strong move on either side of the band in the week ahead?

Nifty is stuck in a narrow range between 23300-23500, and a break on either side will lead to trending moves. The underperformance of Bank Nifty is preventing Nifty from moving higher; for Nifty to break on the higher side, Bank Nifty must start performing. The undertone remains bullish, and one should adopt a buy approach on a breakout above 23,500, targeting 23,800-24,000.

How would you trade Nifty Bank in the holiday-shortened week?

For Nifty Bank, one should wait for a breakout confirmation above the 50,200 mark. If the index breaks above 50,200, it will open the path