Nifty Bank Index
This support zone presents a valuable opportunity for traders to enter long positions, taking advantage of any short-term pullbacks. The strategy of “buying on dips” or purchasing near the identified support levels is recommended, given the overall bullish trend visible on the charts.
This approach allows traders to align with the prevailing market trend while managing risk effectively. Once the index finds support and begins to recover, the target levels to monitor are 51,950, 52,500, and 52,900. These targets represent the potential upside gains that traders can aim for, based on the current market momentum and technical indicators. Achieving these targets would confirm the strength of the bullish trend and the potential for further gains.
Nifty Private Bank Index
Until this level is decisively breached, the index is likely to consolidate, implying a period of sideways movement or minor corrections. Given this scenario, the best trading strategy for near-term traders would be to capitalize on any dips by buying the index near its significant support levels. The important support range to watch is between 25,375 and 25,300. These levels provide a cushion for the index and represent favorable entry points for traders looking to participate in the ongoing bullish trend. By buying near these support levels, traders can manage their risk while positioning themselves for potential upside. If the Nifty Private Banks Index breaks above the 25,750 level, it would signal the start of a new leg in the rally, with the next resistance levels expected at 25,950, 26,275, and 26,450.
These levels are crucial as they represent potential profit-taking zones where traders might encounter selling pressure. Therefore, monitoring these levels closely is essential for those looking to ride the bullish wave. Overall, the Nifty Private Banks Index remains bullish on the charts, indicating a favorable environment for traders to adopt a “buy on dips” strategy. This approach aligns with the positive market sentiment and technical indicators that support the view of continued upward movement. By focusing on the key support levels of 25,375 to 25,300 and being prepared for a breakout above 25,750, traders can effectively navigate the near-term market conditions, aiming for the higher resistance targets of 25,950, 26,275, and 26,450. This strategy provides a balanced approach, capturing potential gains while managing downside risks.
(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: Aug 28 2024 | 6:16 AM IST
