Nifty Financial Services Index
On the other hand, if the index breaks above the upper level of 23,500, it would signal a resumption of the bullish momentum. The next resistance levels to watch for in this scenario are 23,675, 23,800, and 24,000. Breaking through these resistance levels would further confirm the bullish outlook and could lead to additional upward movement in the index.
Given the current technical setup, the best trading strategy would be to wait for a decisive breakout from this range. Traders should closely monitor the levels around 22,350 and 23,500.
A confirmed breakout will provide a clearer direction for the market, enabling traders to make more informed decisions. It is advisable to keep a strict watch on these levels and be ready to act based on the breakout direction.
Nifty PSU Bank Index
The Nifty PSU Bank Index is showing an upward trend in the near term, despite experiencing a recent correction. This pullback should be viewed as an opportunity to accumulate the index and its constituent stocks at lower levels. The key support levels to focus on are 6,960, 6,900, and 6,825. These levels offer strategic entry points for traders and investors looking to capitalise on the anticipated outperformance of the index in the near term.
The best trading strategy for the Nifty PSU Banks Index would be to adopt a “buy on dips” approach. The ongoing correction provides a favourable opportunity to enter the market at a discounted price, taking advantage of the upward trend. By purchasing the index and its constituents near the identified support levels, traders can position themselves to benefit from the expected recovery and subsequent upward movement.
Once the index finds support and begins to rise, the next target levels to watch for are 7,100 and 7,200. These levels represent the resistance points where traders might consider booking profits, especially if the index shows signs of slowing down or encountering selling pressure. The overall bullish outlook suggests that the index and its constituent stocks are likely to outperform in the near term, making the “buy on dips” strategy particularly attractive.
(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.)
First Published: Aug 27 2024 | 6:23 AM IST
