Nifty Fin Services, PSU Bank: Check support, resistance & other key levels

Nifty Financial Services Index: Bullish Breakout and Buy-on-Dips Strategy

The Nifty Financial Services Index has recently shown a positive breakout from its consolidation phase, with a strong close above 23,911. This signals a bullish shift in the near-term outlook, indicating potential for further upward movement. Technical indicators, such as the Relative Strength Index (RSI) and stochastic oscillator, also point toward a positive breakout, confirming the index's strength. Given these indicators, the best trading strategy would be to buy on dips, with a strict stop-loss set at 23,575 on a closing basis. The index's next resistance levels are projected at 24,400 and 24,750, which could serve as profit-taking zones for short-term traders. Investors are advised to keep a close watch on any market pullbacks, as these would provide good opportunities to accumulate positions in both the index and its constituents. With overall market sentiment tilting toward bullishness, this is an opportune time to enter long positions on price corrections, while carefully managing risk.

 

Nifty PSU Banks Index: Range-Bound Movement with Breakout Potential

The Nifty PSU Banks Index continues to trade within a defined range of 6,750 to 6,450, with no clear breakout yet in sight. This range-bound movement suggests that traders should wait for a decisive move above or below these levels to establish new trends. For those willing to take on more risk, there is an opportunity to adopt a short-term strategy of buying near the support level of 6,450 and selling near the resistance of 6,750. However, should the index close above 6,750, it would signal a bullish breakout, opening the door for further gains. In this scenario, the next resistance levels would be 6,875, 7,075, and 7,150. On the downside, if the index closes below 6,450, traders should watch for support at 6,250 and 6,000, as this would indicate potential for further downside movement. Until a breakout occurs, a range-bound trading strategy could yield profits for risk-tolerant traders, while more conservative participants may prefer to wait for a clear trend to emerge.

In conclusion, the Nifty Financial Services Index presents a more immediate opportunity for bullish trades, while the Nifty PSU Banks Index requires patience for a breakout. Both indices offer distinct trading opportunities, with varying levels of risk and reward.

(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.)