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Nifty Bank Index
The Nifty Bank Index, currently at 48,048.20, shows a bullish trend on the charts. For traders, the best strategy in the near term would be to buy the index and its constituents at lower levels, maintaining a strict stoploss at 47,650.
The target resistances to watch are 48,600, 48,850, and 49,335. If the index breaks above 49,650, it will trigger a breakout, negating all short positions and setting the stage for a potential new life high at 50,700.
This level is critical as a close above it would signal a strong bullish momentum, likely attracting further buying interest. Technical indicators support this strategy, emphasizing the importance of buying on dips to capitalize on the upward trend.
Traders should closely monitor these resistance levels and maintain disciplined stoplosses to manage risk effectively. The overall outlook remains positive, with significant upside potential if the index sustains above the key breakout level of 49,650.
Nifty PSU Bank Index
The Nifty PSU Bank Index, currently at 7,264.75, exhibits a bullish trend on the charts. However, it is approaching a significant resistance range between 7,265 and 7,365, where profit booking and selling pressure are likely to emerge.
Given this, the best trading strategy in the near term would be to sell on the rise within this resistance range, maintaining a strict stoploss at 7,375 on a closing basis. Conversely, if the index drops to lower levels, such as 7,160 or 7,050, it would present an excellent buying opportunity for traders. These lower levels could offer a favorable entry point for near-term gains.
Thus, traders should keep these levels in mind and trade the index accordingly, leveraging the potential for both upward momentum from lower levels and resistance-based selling at higher levels. This balanced approach allows for profit maximization while managing risks effectively.
(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.)
