Nifty Private Banks Index: On the Verge of a Negative Breakout
If the index closes below 26325, the next key support levels to watch are 26050, 25775, 25350, and 24825. These levels are expected to act as strong support in the near and short term, where fresh buying opportunities could emerge. From a personal perspective, the best level to accumulate the index and its constituents would be below 25350.
Investors with a long-term horizon may also consider building positions at these levels for both short- and mid-term gains. In summary, the near-term trend remains downward on the charts, and traders should closely monitor the 26325 level. A break below this would signal the need to wait for lower support levels to initiate fresh long positions. Until this level breaks, staying cautious and avoiding premature entries is advisable.
Nifty PSU Banks Index: Range-Bound, Awaiting Breakout
The Nifty PSU Banks Index is currently range-bound, trading between the 6900 resistance level and the 6550 support level. A close above or below these levels would act as a trigger for a breakout, indicating the next directional move. Traders should remain patient and wait for a decisive breakout before taking positions, as the index has been consolidating within this range.
For risk-tolerant traders, a strategy of selling near resistance and buying near support could be employed, but with a strict stop-loss based on the same breakout levels on a closing basis. In the event that the index breaks below the lower support of 6550, the next support levels would be 6180 and 5650.
On the flip side, if the index breaks above the upper resistance level of 6900, the next resistance levels would be 7135 and 7310. The best trading strategy for conservative traders would be to wait for a confirmed breakout before taking any positions, either long or short. More aggressive traders can trade within the range but should exercise caution with tight stop-losses.
Conclusion
On the other hand, the Nifty PSU Banks Index remains range-bound, and traders should wait for a breakout from the 6900–6550 range before making any decisive moves. Risk-tolerant traders can trade within this range, but should use strict stop-losses. For both indices, patience and caution are key until clearer signals emerge.
(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: Oct 03 2024 | 7:29 AM IST
