 "Look to sell Nifty Financial Service, PSU Bank indices on rise")
Nifty Financial Service Index
The current market price (CMP) of the Nifty Financial Service Index stands at 19,532.70. In the near term, it is anticipated that the index will trade within a range of 19,650 to 19,100. A close above or below this range would act as a trigger, indicating a potential direction for the index.
Until a breakout occurs in either direction, the recommended trading strategy for traders would be to buy near the support levels and sell near the resistance levels. Setting a strict stop loss of 1 percent from the breakout level is important to manage risk effectively.
Considering that the CMP is currently near the higher end of the range, it is advised to sell on any price rise. The index is expected to trade with a negative bias until a breakout occurs, indicating a shift in market sentiment.
In summary, the Nifty Financial Service Index is expected to trade within the range of 19,650 to 19,100 in the near term. Traders are advised to adopt a buy near support and sell near resistance strategy, with a strict stop loss of 1 percent from the breakout level.
Given the current positioning of the CMP near the higher range, selling on price rallies is recommended, as the index is expected to maintain a negative bias until a breakout is observed.
Nifty PSU Bank Index
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The current market price (CMP) of the Nifty PSU Bank Index stands at 4,040.65. In the near term, the index is expected to trade within a range, indicating a range-bound market condition. The range is defined between 4,100 on the upper side and 3,900 on the lower side.
A trade that occurs above or below this range would be considered a breakout, potentially indicating a shift in market sentiment and direction. Until a breakout is witnessed, the recommended trading strategy would be to sell near resistance levels and buy near support levels.
To elaborate further, when the index approaches resistance levels, it may be a suitable opportunity to consider selling positions. On the other hand, when the index reaches support levels, it may present a favorable position for buying. This approach allows traders to take advantage of price movements within the range.
In summary, the Nifty PSU Bank Index is currently in a range-bound state, with the range defined between 4,100 and 3,900. Traders are advised to sell near resistance levels and buy near support levels until a breakout occurs. This strategy allows traders to capitalize on potential price fluctuations within the defined range.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).