Bias for Nifty PSU Bank, Pvt Bank indices remain bullish; here's why

Nifty Pvt Bank Index

The Nifty Pvt Bank Index is currently trading at a CMP (Current Market Price) of 22,302.90. The index is currently exhibiting a range-bound pattern on the charts, with the upper boundary around 22,675 and the lower boundary around 22,025. A decisive move above or below this range would indicate a trigger for further price movement in that direction.

Despite the consolidation phase, the overall trend of the index remains bullish. It is important to note that the current consolidation is more time-based rather than price-based.

In such situations, the recommended trading strategy would be to look for buying opportunities near the support levels. On the charts, the expected support levels are around 22,150, followed by 22,025, 21,850, and 21,625. These levels are anticipated to provide a supportive base for the index during any temporary pullbacks or corrections.

Conversely, the resistance levels on the charts are observed at 22,500, 22,675, 22,800, and 23,000. These levels may act as barriers, potentially limiting further upward movement and prompting sellers to enter the market.

Nifty PSU Bank Index

The Nifty PSU Bank Index is currently trading at a CMP (Current Market Price) of 3,984.90. The index is currently exhibiting a range-bound pattern on the charts, with the upper boundary around 4,130 and the lower boundary around 3,900. A decisive move above or below this range would indicate a trigger for further price movement in that direction.

Considering the bullish trend on the charts, the recommended trading strategy would be to look for buying opportunities near the support levels. On the charts, the expected support levels are observed around 3,936, followed by 3,900. These levels may act as a potential buying zone, where traders can consider entering the market. 

Conversely, the resistance levels on the charts are observed at 4,064, 4,107, 4,126, and 4,175. These levels may pose as hurdles, potentially limiting further upward movement and prompting sellers to enter the market.

It is important for traders to closely monitor the price action and volume dynamics for any breakout or reversal signals. Taking into account the overall bullish trend, traders should focus on finding opportunities to buy the index and its constituents at lower levels near the support price.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).