Fin Nifty needs to clear hurdle at 20,500; Pvt Banks index looks bullish

According to Ravi Nathani, an independent technical analyst, the outlook for Nifty Metal, Energy and Pharma indices is bullish and hence recommends to buy at CMP or on dips.

Nifty Financial Index

The Nifty Financial Index is currently trading at a CMP (Current Market Price) of 20,301.25. In order for the bulls to gain strength, the index needs to trade above 20,500.

The overall expectation is for the index to trade within a range, with the upper range being 20,500 and the lower range at 19,875. Until a breakout occurs beyond this range, the index is likely to move sideways.

Considering this consolidation, the best trading strategy would be to buy near the support level of the lower range and sell near the resistance level of the upper range. A trade above or below this range would provide a trigger for the next direction.

 

If a breakout occurs on the upper side, the next resistance levels to watch for would be around 20,580, 20,750, and 21,000. Conversely, if a breakout occurs on the lower side, the next support levels on the charts are anticipated around 19,735, 19,500, and 19,364.

Nifty PSU Banks Index

The Nifty PSU Banks Index is currently trading at a CMP (Current Market Price) of 4,489.15. The near-term trend for the index is range-bound, indicating a consolidation phase. The range for this consolidation is between 4,525 on the upper side and 4,325 on the lower side.

It is important to monitor the price movements closely, as a trade above or below this range would act as a trigger for the next directional move. If the index manages to break above the upper range of 4,525, the next resistance levels on the charts are expected around 4,570 and 4,640. These levels may pose challenges for further upward movement.

On the other hand, if the index breaks below the lower range of 4,325, the next support levels on the charts are anticipated around 4,250 and 4,150. These levels may act as cushions for potential downward movements.

Nifty Pvt Banks Index

The Nifty Pvt Banks Index is currently trading at a CMP (Current Market Price) of 23,224.95. The trend on the charts is bullish, indicating a positive outlook for the index.

In the near term, the index is expected to outperform, making it an opportune time for traders to consider buying positions. The recommended trading strategy would be to buy at the current market price or on any pullbacks. This strategy allows traders to take advantage of potential upward price movements.

The target levels for this trade are expected to be around 23,380 and 23,575, which represent potential price objectives for the bullish move.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).