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Nifty Pvt bank index is consolidating; track these levels for next big move

If the index manages to surpass 22,480 and 22,650, it could indicate a bullish breakout.

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Ravi Nathani Mumbai

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Nifty Pvt Banks Index
The Nifty Pvt Banks Index, currently trading at 22,238.60, is experiencing a consolidation phase within the range of 22,350 to 22,100. A decisive move above or below this range would provide a trigger for the near-term direction of the index. On the upside, resistance levels are anticipated around 22,480 and 22,650. If the index manages to surpass these levels, it could indicate a bullish breakout. On the other hand, if the lower range is violated, the next support on the charts is expected around 21,900, suggesting a potential bearish move.

Given the current market conditions, the recommended trading strategy for traders is to either wait for a breakout beyond the range or, for more risk-tolerant traders, consider buying near the support levels and selling near the resistance levels. This approach allows traders to capitalize on potential price movements while waiting for a clear trend to emerge. By being patient and attentive to the price action within the range, traders can position themselves advantageously once a decisive breakout or trend develops.

Nifty PSU Banks Index
The Nifty PSU Banks Index, currently trading at 3,991.55, presents key levels to watch for traders. If you are a short seller, closely monitor the level of 4,025, as a trade and close above this level could trigger bullish sentiments in the near term. On the downside, the index finds support at 3,900 and 3,810.

Considering the current market conditions, the recommended trading strategy for traders would be to sell on any rise in the index with a strict stop loss of 4,075 on a closing basis. This approach allows traders to take advantage of potential downward movements. Alternatively, traders can wait for the completion of the current correction and consider buying between the support levels of 3,900 and 3,810. This range may offer favorable opportunities for swing traders to accumulate positions. By closely monitoring the price action and adhering to the suggested trading strategies, traders can position themselves advantageously based on market movements and potential breakout levels.

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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. 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.

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First Published: May 23 2023 | 7:23 AM IST

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