Sell Nifty Pvt Bank on rally; Nifty PSB to see profit booking below 4,050

Nifty Private Banks Index

Last close: 22,509.45 

The hourly charts suggest that the index is in a consolidation phase. The range-bound levels for the index are 22,625 on the upper side and 22,260 on the lower side. A trade above or below this range would act as a trigger for further movement in the respective direction. Support on the charts for this week is expected around 22,200 and 22,050, while resistance levels are anticipated at 22,625 and 22,775. The Bollinger Bands are indicating a flat pattern, suggesting that selling near the upper band levels and re-purchasing near the lower band levels would be the optimal trading strategy for this index.

The Stochastic indicator is trading in the overbought zone with a downward slope, indicating a potential weakening of the bullish momentum. Considering all the parameters, the recommended trading strategy for this index and its constituents would be to sell on rallies. This strategy aligns with the indications from the Bollinger Bands and the downward trending Stochastic indicator.

In summary, the Nifty Privat Banks Index is currently experiencing consolidation on the hourly charts. The range-bound levels are 22625 and 22260, and a trade beyond these levels would provide a directional trigger. Support is expected around 22200 and 22050, while resistance levels are at 22625 and 22775. Selling near the upper band levels and buying near the lower band levels is advised. The Stochastic indicator supports a bearish bias. Traders are recommended to sell on rallies for this index and its constituents.

Nifty PSU Banks Index

Last close: 4,075.40

A close below 4,050 would likely attract profit booking in the near term. In such a scenario, the index is expected to find support at 4020, 3950, and 3875. The Bollinger Bands are currently flat, indicating low volatility in the market. Regarding the price pattern formation on the charts, the index is expected to trade with a negative bias. Resistance levels on the charts are anticipated around 4135, 4175, and 4200. Traders should closely monitor these levels as they could serve as potential reversal or breakout points.

Additionally, the relative strength index (RSI) level on the hourly charts is currently at 53. A trade below the 50 level would likely trigger some selling pressure. In summary, for the Nifty PSU Banks Index, a close below 4050 would attract profit booking in the near term. Support levels can be found at 4020, 3950, and 3875. The flat Bollinger Bands suggest low volatility, and the price pattern formation indicates a negative bias. Resistance levels are expected around 4135, 4175, and 4200. Traders should remain vigilant about the RSI level, as a trade below 50 could potentially trigger selling pressure.