Trading Strategy: Nifty PSU Bank, Private Bank eye breakout; key levels | News on Markets

Nifty PSU Banks Index

The Nifty PSU Banks Index is currently range-bound, oscillating between the levels of 7,090 and 6,910. This indicates a phase of consolidation, where the index lacks clear direction and is waiting for a catalyst to move decisively. When an index is range-bound, it typically suggests that the market participants are uncertain, and the buying and selling forces are relatively balanced.

The Nifty Private Banks Index shows a bullish trend on the charts, but it faces significant resistance around the 25,960 level. This resistance acts as a psychological barrier, and a close above this level is crucial for the continuation of the current bullish momentum.

If the index manages to close above 25,960, it is likely to move towards the next resistance levels at 26,275 and 26,450. These levels represent the next potential targets for traders looking to capitalize on the bullish momentum.

The best strategy for traders is to wait for a clear breakout above 25,960 on a closing basis. This breakout would confirm the strength of the bullish trend and provide a safer entry point for traders aiming for higher targets.

However, for those willing to take on more risk, booking profits on rises with a strict stop-loss at 25,960 on a closing basis could also be a prudent approach. This strategy would involve capitalizing on the current gains and waiting for a potential pullback to re-enter at lower levels.

In summary, for the Nifty PSU Banks Index, the strategy is to wait for a breakout from the 7,090-6,910 range to determine the next move. For the Nifty Private Banks Index, waiting for a breakout above 25,960 is recommended, with profit booking on rises as an option for risk-averse traders. Buying on dips remains the strategy, supported by the bullish trend and expected support levels.

(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.)