Nifty Private Bank index may spurt up to 25,525; Look to buy the dips

According to Ravi Nathani, an independent technical analyst, traders can keep a stop at 22,800 while taking a long position in the Nifty Private Bank index.

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Ravi Nathani Mumbai

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Nifty Private Banks Index: Embracing a Bullish Trend

The Nifty Private Banks Index, having wrapped up its recent trading session at 23,125.10, reveals a positive trend upon a glance at the daily charts. This bullish inclination opens doors to potential trading strategies for investors seeking to capitalize on these market dynamics.

The optimal approach seems to be buying during price dips, which aligns well with the ongoing bullish trend on the charts. To manage risks effectively, it's advised to set a strict stoploss at 22,800 on a closing basis. This precautionary measure safeguards against unexpected market movements while maintaining a focus on potential gains.

In terms of anticipated targets, traders could keep their sights set on 23,350, 23,480, and 23,525. These levels represent key thresholds where the index might encounter resistance or pivot points. Staying attentive to these milestones provides traders with valuable insights to tailor their trading strategies.

In essence, the Nifty Private Banks Index's bullish trajectory offers traders a promising opportunity. Buying on dips, setting strategic stoploss levels, and targeting potential resistance points are all integral components of a calculated approach to trading in a dynamic market environment.

Nifty PSU Banks Index: A Balanced Range-Bound Outlook

The PSU Banks Index, wrapping up its recent trading session at 4,564.90, presents a market landscape that's caught within a range, coupled with a positive inclination.

Analyzing the daily charts, traders are offered insights into potential trading strategies that could align with these dynamics. The observed range sees the lower limit resting at 4,510, while the upper threshold sits at 4,710. This range serves as a pivotal zone, potentially dictating the index's short-term trajectory.

Amidst this balanced situation, a cautious yet effective trading strategy emerges. The strategy entails purchasing the index when it nears the support level and selling when it approaches resistance. This approach resonates well with the current range-bound condition, which doesn't provide a clear breakout direction just yet.

Staying attuned to these levels of support and resistance positions traders to capitalize on price fluctuations within this range. It's a strategy that prioritizes risk management and seeks to optimize gains based on the existing market landscape.

In essence, the PSU Banks Index's range-bound movement with a positive bias holds potential for traders. By adopting a strategy that revolves around support and resistance levels, investors can navigate the current market environment with a calculated approach.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).

First Published: Aug 29 2023 | 06:59 AM IST

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