Nifty Pvt Bank, Auto indices: Check resistance, support & other key levels

Nifty Private Bank Index: Key Support Levels to Watch

 

The Nifty Private Banks Index is currently experiencing a downward trend, supported by short-term moving averages, all of which are sloping downwards. The ongoing correction has brought the index near a critical support level at 25,350. If the index closes below this level, it could trigger fresh selling pressure, leading to the next support levels at 25,165, 25,050, and 24,650. Traders should monitor the 25,350 level closely, as any decisive close below this mark would signal further weakness in the index.

 

On the flip side, if the index manages to close above 25,625, it could indicate a reversal in trend, potentially opening the doors for a rally towards the resistance levels of 25,800 and 26,075. For traders, the best approach at the moment would be to remain cautious and wait for either a breakdown below the 25,350 level or a breakout above 25,625 to initiate positions accordingly. In the near term, the trend appears bearish, but a rally could be on the horizon if key resistance levels are breached.

 

Nifty Auto Index: Waiting for Correction to Complete

 

The Nifty Auto Index is also exhibiting a downward trend in the near term, as indicated by technical indicators such as the Moving Average Convergence Divergence (MACD) and Exponential Moving Averages (EMAs). The index is currently approaching critical support levels at 24,075 and 23,300. With the 200-day EMA positioned at 23,335, this zone below 23,400 becomes an attractive area for swing traders to initiate buy positions. For now, the best trading strategy would be to wait for the ongoing correction to complete and look for opportunities to accumulate the index and its constituents around the support levels mentioned. A dip below 23,400 would present a favorable buying opportunity for swing traders aiming to capitalize on a potential technical rebound. However, traders should be patient and avoid entering positions until the index shows signs of stabilisation around the key support areas.

 

In summary, while the Nifty Private Banks Index is teetering near a crucial support level that could dictate its next move, the Nifty Auto Index is heading towards an attractive buying zone. Both indices present opportunities for traders, with a focus on key support and resistance levels to guide trading strategies in the near term.

 

(Disclaimer: Ravi Nathani is an independent technical analyst. Views are his own. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. It should not be construed as a recommendation to purchase or sell such securities.)