Nifty Bank eyes bullish breakout on charts; check support, target and more

Nifty Bank Index: Eyeing a Potential Bullish Breakout

The Nifty Bank Index remains range-bound between 52,577 and 51,000, but recent indicators suggest a positive outlook with yesterday’s strong close signaling a potential breakout on the upside. This positive sentiment makes it an attractive opportunity for traders to prepare for a bullish move if the range is broken.  Should the index surpass the upper boundary of 52,577, the next resistance points to watch is 53000, 53,300, and 53,750. Alternatively, if the index drops below 51,000, it could find support around 50,380 and 49,950. For optimal trading, keeping these levels handy and waiting for a confirmed breakout before accumulating positions at dips may yield strong returns.

 

 

Nifty PSU Banks Index: Bullish Trend with Defined Levels

The Nifty PSU Banks Index exhibits a bullish trend for the near term, with the best strategy being to buy the index and its constituents on dips. For this week, traders should note that resistance is positioned at 6,840, while support is expected at 6,580. A strategy of buying near the support and selling around resistance could be advantageous, capitalizing on the trend’s current momentum while remaining cautious around these key levels.

 

Nifty Pvt Banks Index: Buy on Dips in Bullish Trend

The Nifty Pvt Banks Index is also showing bullish sentiment in the near term, although resistance is anticipated around 25,775. Should the index break through this level, the next resistance to monitor is 26,275. Support levels lie at 25,450 and 25,300. Given this setup, the most effective strategy would be to buy on dips, as indicated by technical signals from RSI and near-term EMA trends that support continued upward movement. 

Summary

The three banking indices—Nifty Bank, Nifty PSU Banks, and Nifty Pvt Banks—each show bullish tendencies in the near term, with both Nifty Bank and Nifty Pvt Banks positioned for potential breakouts. For Nifty PSU Banks, it’s beneficial to watch closely for breakout levels, while Nifty Pvt Banks presents a buy-on-dips opportunity supported by robust technical indicators. Each of these indices, driven by bullish sentiment, offers strategic entry points that could lead to favorable results in the coming sessions.

 

(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.)