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.
Conversely, a close below 6,910 would indicate a bearish breakout, likely leading to increased selling pressure and a downward move. Traders should stay alert and be ready to trade in the direction of the breakout, as this will provide a clearer trend and reduce the risk of false signals often associated with range-bound markets.
Nifty Private Banks Index
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.
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.
Support on the charts is expected around 25,655, 25,490, and 25,375. These levels could serve as good buying opportunities for traders looking to enter or add to their positions during a pullback. As the overall trend remains bullish, buying on dips is advisable, with the expectation of a resumption of the upward trend once the pullback stabilizes.
(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: Sep 04 2024 | 6:50 AM IST
