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

Nifty Private Bank Index

The Nifty Pvt Banks Index, which last closed at 23,221, is exhibiting a range-bound pattern on charts, with upper and lower boundaries set at 23,375 and 23,025 respectively.

A trade above or below these levels would signal potential directional movements in the index. If the index falls below the lower boundary of 23025, the next support levels on charts are expected at 22650 and 22250.

Conversely, if it surpasses the upper boundary of 23375, minor resistance is anticipated at 23550, with stronger resistance observed around 23950.

RSI (Relative Strength Index) is trending lower, along with the MACD (Moving Average Convergence Divergence), indicating a weakening momentum.

 

In light of these indicators, the recommended trading strategy would be to wait for a breakdown below the lower boundary of 23025.

Once a breakdown occurs, traders may consider initiating short positions for the near term.

In summary, the Nifty Pvt Banks Index is currently range-bound, with clear levels identified for potential breakout or breakdown scenarios.

Traders are advised to exercise caution and wait for confirmation of a breakdown before entering short positions, taking into account the indications from both RSI and MACD.

Nifty IT Index

The Nifty IT Index, which last closed at 35,815, is experiencing a downtrend in the near term as observed on charts.

However, the ongoing correction has brought the index closer to a significant support level, which is identified at 35,536. A close below this level could potentially trigger further downside movement, with support levels expected at 35,150, 34,725, and 34,250.

In the near term, the recommended trading strategy would be to wait for the correction to complete and monitor the index until it reaches the above mentioned support levels.

It is important to note that once the index trades below the 35,000 level, it would present an attractive opportunity to accumulate the index and its constituents for both the near and short term, aiming for a technical bounce.

Therefore, the advised approach at the current market price would be to wait for the correction to conclude and consider buying at the identified support levels for a potential technical rebound.

Traders should exercise patience and closely monitor the price action, ensuring to act upon confirmation of the support levels being reached before initiating any buying positions.

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.