Nifty Financial Services Index: Charting a Bullish Course, hence buy on dips
The Nifty Financial Services Index is on the move, and the near-term charts are painting a distinctly bullish picture. Currently holding at 20,305.30, the index is poised for what could be an exciting journey ahead.
In the near term, the charts suggest that there's a modest hurdle in the form of resistance, expected to be in the range of 20,400 to 20,525. Should the index manage to close above this range, it could mark a significant breakout on the charts.
A breakout of this nature typically signifies a fresh wave of buying interest, setting the stage for potential gains. The initial target in such a scenario would be 20,975, as indicated by the charts.
The technical indicator known as the Moving Average Convergence Divergence (MACD) also lends support to this bullish sentiment. For traders looking to capitalize on this trend, the best strategy would be to buy on price dips. This approach aligns with the bullish outlook and allows traders to seek opportunities as the index advances.
Nifty PSU Bank Index: Riding the Bullish Wave
The Nifty PSU Bank Index is currently making waves, and the technical charts are painting a picture of optimism for both short-term and near-term traders. As of now, the index stands at 4,853.85, and the indicators suggest that it's riding a bullish momentum.
One of the key signals pointing towards this bullish stance is the Moving Average Convergence Divergence (MACD) indicator. It's flashing positive on the charts, indicating strong upward momentum. This is often seen as a promising sign for traders eyeing potential gains.
Furthermore, the current market price (CMP) of the index has managed to close above the R2 point of Pivot levels. This achievement sets the stage for the next potential barriers, which are denoted as the R3 levels. Specifically, these levels are at 4,930, followed by 5,055. These could serve as resistance points to watch on the charts.
For traders aiming to make the most of this bullish outlook, the best course of action would be to buy on price dips. This strategy aligns with the momentum and allows traders to capitalize on potential upswings in the index.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).