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Time to consider profit booking in Nifty Bank, Pvt Bank? Check details

The Nifty Bank Index is currently trading at 50,440.90. In the near term, the index has reached its resistance level of 50,600

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Ravi Nathani Mumbai

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Nifty Bank Index Analysis

The Nifty Bank Index is currently trading at 50,440.90. In the near term, the index has reached its resistance level of 50,600. Until the index closes above this level, some correction or profit booking is expected either at the current market price (CMP) or on any rise. The best trading strategy would be to book profits and wait for a pullback.

The support levels on the charts are expected around 50,150 and 49,800. On the flip side, if the index breaks and closes above 50,600, the next stiff resistance levels on the charts would be 51,000 and 51,200.

In summary, traders should consider booking profits at the CMP or on any upward movement and wait for a pullback to the support levels of 50,150 and 49,800. If the index closes above 50,600, watch for the next resistance levels at 51,000 and 51,200. This approach aligns with the current resistance level and potential for a pullback, providing an opportunity to benefit from the expected correction in the near term.

Nifty Private Banks Index Analysis

The Nifty Private Banks Index is currently trading at 25,049.65. The index appears overbought on the charts, indicating a need for a pullback. Given this scenario, the best trading strategy would be to sell on any rise or book profits either at the current market price (CMP) or on any further upward movement.

Technical indicators, such as RSI and Stochastic, confirm the overbought condition, suggesting that selling pressure may increase on any rise. The expected support levels on the charts are around 24,950 and 24,800.

In summary, the strategy for traders should be to capitalise on the overbought condition by selling on rises or booking profits at the CMP. Keep an eye on the support levels of 24,950 and 24,800 for potential pullback targets. This approach helps manage risk by adhering to the signals from technical indicators and prepares for a potential correction in the near term.

(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.)

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First Published: Jun 19 2024 | 6:28 AM IST

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