Nifty Bank weak on charts, Nifty Private Bank rangebound: Check key levels

To capitalize on the prevailing downtrend in Nifty Bank, traders are recommended to sell, book profits, or establish short positions only when the index breaks below 46,864, said Ravi Nathani

Nifty Bank Index

The Nifty Bank Index, which last closed at 47,282, is currently indicating a downtrend in the near term, as observed on charts. It's crucial to keep a close watch on the level of 46864, as a close below this threshold would likely trigger panic selling in the market.

In such a scenario, the index is anticipated to find support directly at 45375 and 44625. Conversely, if the index manages to close above 46725, it would signal strength among the bulls, potentially shifting the market sentiment.

Traders are advised to keep a stop-loss in mind at the level of 46725.

 

To capitalize on the prevailing downtrend, traders are recommended to sell, book profits, or establish short positions only when the index breaks below 46864.

Doing so may lead to achieving desired targets, as mentioned above. In summary, the Nifty Bank Index is currently in a downtrend, and it's essential for traders to monitor the critical level of 46864.

Selling, booking profits, or building short positions should be considered only after the index breaches this level, while keeping the stop-loss at 46725 in mind.

This strategy aligns with the observed market conditions and provides a prudent approach for traders to navigate the current trend.

Nifty Private Banks Index

The Nifty Private Banks Index, which last closed at 23,605, is currently exhibiting a range-bound pattern on charts, with boundaries set at 23,725 on the upside and 23,400 on the downside.

A close above or below these levels would serve as triggers for potential directional movements in the market. If the index manages to close above 23,725, the next resistance levels on charts are expected to be at 23,975 and 24,100.

Conversely, if the index closes below 23,400, the next support levels are anticipated directly at 23,125, 22,675, and 22,250. It's noteworthy that the level of 23,400 holds significant importance, as a close below this level could trigger panic selling in the market.

Given the current market conditions, the recommended trading strategy at the current market price is to wait for a breakout.

Traders are advised to closely monitor the price action and refrain from initiating significant positions until a clear breakout above or below the identified range occurs.

In summary, the Nifty Private Banks Index is currently range-bound, with critical levels at 23,725 and 23,400.

Traders should be prepared for potential breakout scenarios and adjust their trading plans accordingly. This cautious approach aligns with the market's uncertainty and provides traders with a strategic framework to navigate the current conditions effectively.

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.