Nifty Fin Services, PSU Bank: Check support, resistance & other levels here
Source: Business Standard
Nifty Financial Service Index
The Nifty Financial Services Index is currently trading in a range-bound pattern, moving between the levels of 23,800 and 23,660. This indicates that the index is in a consolidation phase, with no clear trend direction emerging for now.
The best approach for near-term traders is to exercise patience and wait for a breakout on either side before taking any trading action. If the index trades and closes above 23,800, it would signal a breakout on the upside, potentially opening the path for a rally towards the next target at 24,000. This could indicate bullish momentum and provide an opportunity for traders to go long on the index or its constituent stocks.
On the other hand, if the index breaks below 23,660 and closes lower, it would suggest weakness and could trigger a downside move. In this scenario, traders should look for the next key support levels at 23,400 and 23,275, which might act as buying opportunities if the overall trend remains bullish.
In summary, the best strategy for near-term traders is to wait for a breakout on either side of this range before making any trading decisions. This will help capture momentum in the direction of the breakout.
Nifty PSU Bank Index
The Nifty PSU Bank Index is currently positioned in a manner where buying on dips presents the most favourable trading strategy for near-term traders. With a strict stoploss of 6,525 on a closing basis, traders should aim to accumulate the index and its constituent stocks as long as this level holds.
The upside targets to watch for are 6,775, 6,880, and 7,100. These levels are anticipated resistance points where traders could consider booking profits or adjusting their positions. If the index sustains momentum, reaching these targets would signal a continuation of the bullish trend in the near term.
However, in case the index closes below 6,525, it would indicate potential weakness. This would open the door for a downward move towards the next support levels at 6,425 and 6,250. These levels are expected to be the oversold zones, presenting potential buying opportunities again for traders looking for a rebound.
In summary, the best approach for near-term traders is to adopt a buy on dips strategy, targeting the resistance levels mentioned while keeping a close watch on the 6,525 stop loss level. A breach of this level may call for a reassessment and could lead to lower levels before a recovery.
(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 10 2024 | 6:18 AM IST
