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Nifty Bank Index
The Nifty Bank Index, which last closed at 46,600, is exhibiting a downtrend in the near term on charts. A trigger for panic selling is anticipated once the index breaches the level of 46,536.
In such a scenario, the immediate next support levels are expected to be around 46,225 and 45,675.
Given this outlook, the recommended trading strategy would be to sell on any upward movement, or "sell on rise," with a strict stop loss placed in the range from 47,000 to 47,180.
This approach allows traders to capitalize on potential downside movements while managing risk effectively.
The downtrend is further supported by the downward trajectory of the near-term moving averages, indicating that the index is likely to underperform in the near term.
As such, traders are advised to remain cautious and adhere to the specified stop loss levels while executing trades in the Nifty Bank Index.
Nifty Private Bank
The Nifty Private Bank Index, which last closed at 23,335, is facing stiff resistance around the 23,500 level, according to chart analysis.
Until this resistance level is breached, the bears are anticipated to maintain control over the market sentiment. In line with this analysis, the recommended trading strategy at the current market price (CMP) is to sell on any upward movement, or "sell on rise."
Support levels on the charts are expected around 23,300, 23,136, and 22,850, indicating potential levels where buying interest may emerge.
Further supporting the bearish outlook are technical indicators such as MACD and RSI, which are also showing bearish patterns on the charts.
These indicators suggest a continuation of the downward trend in the index. Traders are advised to exercise caution and closely monitor price movements, adhering to the specified support and resistance levels while executing trades in the Nifty Pvt Banks Index.
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.
