Here's why you should consider booking profit in Nifty PSU Bank index

The recommended trading strategy for PSU Bank index is to "sell on rise" or consider booking profits and maintaining a cash position, says Ravi Nathani

Strategic Trading in Nifty Private Bank Index

The Nifty Private Bank Index, currently positioned at a CMP of 24885 is exhibiting a range-bound pattern between 25000 and 24100 on the charts.

Until a decisive close above or below this range occurs, the optimal trading strategy involves buying near support levels and selling near resistance levels.

This approach capitalizes on the existing trading range dynamics. Should the index breach the lower limit of 24100, the next support levels are anticipated around 23900 and 23600.

Conversely, a breakout above 25000 could pave the way for the next resistance levels at 25200 and 25450. Traders are advised to remain attentive to these key levels for potential trigger points in the coming sessions.

 

By adopting a buy-and-sell approach within the established range, traders can leverage the market's current dynamics to their advantage.

The flexibility to adapt to a changing scenario, combined with a keen awareness of support and resistance levels, forms the basis of a strategic trading approach in the Nifty PVT Bank Index.

Nifty PSU Bank Index: Monitoring Key Support for Potential Downtrend

The Nifty PSU Banks Index, currently at a CMP of 5918 is under scrutiny as traders should closely observe the critical level of 5880.

A breach of this level could trigger selling pressure on upward movements. The anticipated support levels on charts lie at 5677, 5600, and 5500, forming crucial markers for traders navigating potential downtrends.

The index currently exhibits a narrow trading range, hinting at a potential compression and a subsequent breakdown in the near future.

To mitigate risk, traders adopting a bearish stance should implement a strict stoploss at 5980 on a closing basis. This stoploss serves as a safeguard against unexpected market movements.

The recommended trading strategy in this scenario is to "sell on rise" or consider booking profits and maintaining a cash position.

This cautious approach aligns with the possibility of a breakdown in the index's narrow range, allowing traders to adapt to evolving market conditions.

Staying vigilant and disciplined in adhering to the specified stoploss will be instrumental for traders navigating the Nifty PSU Banks Index in the coming days.

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.