'Sell-on-rise' strategy suitable for Nifty Private Bank index: Ravi Nathani
The technical analyst recommends to employ 'sell-on-rise' strategy for Nifty Private Bank, Nifty Consumption indices in the near-term
 "'Sell-on-rise' strategy suitable for Nifty Private Bank index: Ravi Nathani")
Nifty Private Bank
Last close: 20,774.2
Last close: 20,774.2
Charts suggest that a potential correction in the near term is imminent for the index. Moreover, hourly charts reveal that the index is approaching a level of stiff resistance at 20,881. This level, therefore, is expected to act as a barrier to upward price movements, and traders should utilise this level as a strict stop loss to minimise potential losses.
On the downside, support on charts is expected around the level of 20,400. This level, meanwhile, is likely to act as a floor to downward price movements, providing traders with a potential entry point for long positions.
However, given the prevailing market conditions, we recommend a sell-on-rise strategy for traders who wish to trade in the remaining days of this week.
Traders should initiate short positions at the current market price or on a rise towards the level of 20,881, utilising this level as a strict stop loss to minimise potential losses. In the event of a downward correction, traders may consider buying at the support level of 20,400.
On the downside, support on charts is expected around the level of 20,400. This level, meanwhile, is likely to act as a floor to downward price movements, providing traders with a potential entry point for long positions.
However, given the prevailing market conditions, we recommend a sell-on-rise strategy for traders who wish to trade in the remaining days of this week.
Traders should initiate short positions at the current market price or on a rise towards the level of 20,881, utilising this level as a strict stop loss to minimise potential losses. In the event of a downward correction, traders may consider buying at the support level of 20,400.
Intraday No Trade Zone: 20,725 – 20,825
Intraday Resistance levels: 20,881 – 20,981 – 21,125
Intraday Support Levels: 20,695 – 20,650 – 20,550
Nifty Consumption
Last close: 7,197.95
Last close: 7,197.95
Based on hourly charts, the index is expected to trade with a bearish bias for the remaining days of this week. This is due to the sharp rally observed last week, which has brought the index to a resistance level between 7,225 - 7,255.
The best trading strategy for traders would be to sell on the rise, utilising a strict stop loss within the aforementioned range.
Our target range is expected to be around 7,125 - 7,075. Additionally, it is important to note that trade below 7,155 will likely bring quick selling pressure, and thus, all bulls should maintain a strict stop loss at this level.
This strategy involves selling the index at higher levels, utilising a strict stop loss within the resistance range of 7,225 - 7,255. Our target range for this trade is expected to be around 7,125 - 7,075.
It is important to note that trade below 7,155 will likely bring quick selling pressure. As such, all bulls should maintain a strict stop loss at this level.
The best trading strategy for traders would be to sell on the rise, utilising a strict stop loss within the aforementioned range.
Our target range is expected to be around 7,125 - 7,075. Additionally, it is important to note that trade below 7,155 will likely bring quick selling pressure, and thus, all bulls should maintain a strict stop loss at this level.
This strategy involves selling the index at higher levels, utilising a strict stop loss within the resistance range of 7,225 - 7,255. Our target range for this trade is expected to be around 7,125 - 7,075.
It is important to note that trade below 7,155 will likely bring quick selling pressure. As such, all bulls should maintain a strict stop loss at this level.
Intraday No Trade Zone: 7,185 – 7,210
Intraday Resistance levels: 7,225 – 7,250 - 7,275
Intraday Support Levels: 7,160 – 7,125 – 7,100
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
(Ravi Nathani is an independent technical analyst. Views expressed are personal).