 "Rally in Nifty Pvt, PSU Bank indices may be topping out; check strategy")
Nifty Private Bank Index: Resistance and Profit Booking
The Nifty Pvt. Bank Index, currently at the level of 24,540.30, is encountering a crucial juncture on the charts. There is a notable indication that the index might be approaching a top, with a formidable resistance anticipated around the 24,836-mark. In light of this assessment, the recommended trading strategy is to proactively book profits as the index experiences upward movements. This is particularly crucial as the short-term trend remains bullish, implying the potential for an imminent pullback.
Identified support levels on the charts are positioned at 24,225 and 23,900. These levels are strategically significant as they could offer attractive opportunities for fresh buying.
Identified support levels on the charts are positioned at 24,225 and 23,900. These levels are strategically significant as they could offer attractive opportunities for fresh buying.
Nifty PSU Bank Index: Booking Profits Amidst Resistance Dynamics
Similarly, the Nifty PSU Bank Index, currently trading at 5,554.10, is displaying signs of a potential top-out scenario. Stiff resistance is projected within the range of 5,564 - 5,581, with the index closely approaching this critical zone. Consequently, traders are advised to exercise caution and secure profits on upward movements.
Transitioning to a cash position is prudent, especially in anticipation of a potential pullback. While the short-term trend favors a bullish outlook, identified support levels on the charts are situated around 5,436 and 5,325. These support zones become focal points for traders aiming to re-enter the market after profit booking. The recommended strategy involves selling on upward movements within the resistance range and adopting a cash stance. Short selling is discouraged, given the prevailing bullish trend in the short term.
Transitioning to a cash position is prudent, especially in anticipation of a potential pullback. While the short-term trend favors a bullish outlook, identified support levels on the charts are situated around 5,436 and 5,325. These support zones become focal points for traders aiming to re-enter the market after profit booking. The recommended strategy involves selling on upward movements within the resistance range and adopting a cash stance. Short selling is discouraged, given the prevailing bullish trend in the short term.
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Disclaimer: Ravi Nathani is an independent technical analyst. 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.
Disclaimer: Ravi Nathani is an independent technical analyst. 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.