Nifty Fin Svcs eyes breakout, PSU Banks attractive on dips; key levels here

Nifty Financial Services Index Analysis:

The Nifty Financial Services Index is currently trading at 23,586.75 and is showing a range-bound pattern on the charts. The defined range is between 23,700 and 23,450, and a trade above or below these levels would likely trigger movement in the corresponding direction. Given this setup, the best trading strategy is to wait for a clear breakout.

If the index trades and closes above 23,700, the next resistance levels to watch are 23,830 and 24,000. Conversely, if the index breaks and closes below 23,450, it could move towards the support levels of 23,264 and 23,000.

Traders should be cautious and avoid making hasty decisions. Instead, they should wait for a breakout to confirm the direction of the next move. This approach minimizes risk and allows traders to capitalize on the momentum following a breakout. Keeping an eye on these critical levels will help in making informed trading decisions in the near term.

Nifty PSU Banks Index Analysis:

The Nifty PSU Banks Index is currently trading at 7,238.90. Given the technical indicators such as Stochastic and RSI, a technical bounce could be expected in the near term. Therefore, the best trading strategy would be to buy on dips, with a strict stop-loss set at 7,200 on a closing basis.

The target for this strategy would be 7,350 and 7,450. The indicators suggest a potential for a technical bounce or pullback in the near term, making this a favorable entry point for traders. By adhering to the stop-loss, traders can manage their risk effectively while aiming for the anticipated upside targets.

(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.)