Nifty PSU Bank in correction, Nifty Private Bank facing near-term downturn

The Nifty PSU Bank index is undergoing a correction phase, and a fresh buying momentum is anticipated only if it closes above 6,225, as per Ravi Nathani

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Nifty PSU Bank Index: Correction Mode After Achieving Short-Term Target

The Nifty PSU Banks Index, with last close at 6132, has been showcasing a bullish trend in the short term. However, in the near term, the index has successfully reached its target of 6,200.

At the current market price, the index is undergoing a correction phase, and a fresh buying momentum is anticipated only if the index closes above 6,225.

In the present correction mode, support on the charts is expected to be in the range of 6025 and 5975 in the near term.

This implies that traders should be cautious about potential selling pressure and monitor the support levels for any signs of a reversal or consolidation.

The recommended trading strategy in this scenario is to consider selling on rallies, especially given the indication from the technical indicator RSI, which has turned down on the near-term hourly charts.

Traders should exercise caution and assess the price action carefully, particularly focusing on the support levels mentioned, as they could provide crucial entry or exit points.

In conclusion, with the short-term target achieved, the index is currently in a corrective phase. Traders are advised to closely observe the support levels and consider selling on rallies, aligning their strategies with the evolving market dynamics.

Nifty Private Bank Index: Lower Top and Lower Bottom Pattern Indicates Near-Term Weakness

The Nifty Private Banks Index, currently at 23,325, is exhibiting a near-term downtrend on the charts.

The prevailing chart pattern reveals a sequence of lower tops and lower bottoms, signaling potential weakness in the short term. Technical indicators further support this bearish outlook.

The Relative Strength Index (RSI), positioned at 48, is signaling a downward move. Additionally, the stochastic indicator, closing below 80 on hourly charts, further underscores the current weakness.

n light of these observations, the recommended trading strategy is to sell on rallies. Traders are advised to initiate short positions with a stoploss set at 23530.

This strategy aligns with the identified lower top and lower bottom pattern, indicating a downward trajectory in the near term.

Crucially, support levels are anticipated at 22750 and 22425. Traders should closely monitor these levels, as they could serve as potential reversal points or areas of increased selling pressure.

The identified support levels provide valuable reference points for traders to manage their risk and make informed trading decisions.

In conclusion, the Nifty Private Banks Index is currently positioned for a near-term downtrend.

Traders are encouraged to implement a sell-on-rise strategy, considering the observed chart pattern and technical indicators, while keeping a vigilant eye on the identified support levels.

Disclaimer: Ravi Nathani is an independent technical analyst. 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.