 "Bank, Banks, foreign banks")
Nifty Financial Services Index Buy on dips
The current market position for the Nifty Financial Services Index stands at 19,241.40. In the recent past, the index experienced a sharp correction, but it has demonstrated signs of recovery over the last two days.
A key observation in market dynamics is the concept that once support is broken, it can transform into resistance. In this context, the level of 19,425 holds significant importance in the current market swing. If the index manages to break this level, the subsequent resistance levels on the charts would be at 19,564, 19,750, and 19,980.
Therefore, traders should closely monitor the index's behavior around the 19,425 mark. If the index fails to breach this level on a closing basis, it is expected to trade within the range of 19,425 to 18,864.
Given this scenario, the optimal trading strategy for the index is to accumulate positions during market dips, with a strict stop loss set at 18,800 on a closing basis.
This cautious approach safeguards against potential losses while aiming for short-term targets of 19,564, 19,750, and 19,980. By adopting this strategy, traders can navigate the market effectively, leveraging the pivotal support and resistance levels to inform their trading decisions and capitalize on potential price movements.
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Nifty Private Banks Index Buy at CMP or at dips
Following a sharp correction, technical indicators suggest a potential rebound in the Nifty Private Banks Index. The charts indicate a likely bounce, with anticipated target resistance levels at 22,664, 22,916, and 23,164. To manage risk effectively, traders are advised to implement a strict stop loss at 21,800.
Given the current market dynamics, the recommended trading strategy is to capitalize on market dips by buying the index. This approach allows traders to enter the market at opportune moments, aligning their positions with the expected upward movements in the index. By employing this strategy, traders can optimize their trading decisions and potentially maximize their gains in the prevailing market conditions.
Nifty PSU Banks Index Range bound on charts
In the near term, the Nifty PSU Banks Index is anticipated to encounter formidable resistance levels within the range of 5,020 to 5,110. Conversely, a trade below 4,850 is likely to instigate selling pressure as indicated on the charts. Market support is expected around 4,760 to 4,700.
Given these market dynamics, a range-bound scenario is expected for this index in the near term. The most prudent trading strategy in this situation would be to sell when the index approaches the resistance levels (5,020 – 5,110) and buy when it nears the support levels (4,760 – 4,700).
This strategy enables traders to capitalize on potential price fluctuations within this specified range, maximizing their trading opportunities based on the prevailing market conditions.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
