Trading strategies for Nifty Banks and Financial Services indices

According to Ravi Nathani, an independent technical analyst, traders can consider the buy on dips strategy for Nifty Financial Services and Private Banks indices. However, the PSU Bank looks weak.

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Ravi Nathani Mumbai

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Nifty Financial Services Index Buy on dips

The current market price for the Nifty Financial Services Index is 19,518.60, and the prevailing trend on charts signals a bullish sentiment for the near term.

The ongoing correction in the charts is viewed as a minor pullback within the broader bullish trend. Noteworthy support levels are anticipated around 19,464, 19,349, and 19,236.

For traders, the recommended strategy is to accumulate the index and its constituents near these support levels. This strategic move positions traders to capitalize on potential short-term gains. The target or resistance levels are expected at 19,850, 19,980, and 20,064.

In summary, the Nifty Financial Services Index exhibits a bullish trend on charts, and the current correction is viewed as an opportunity for traders to accumulate positions strategically. By aligning with the identified support levels, traders can navigate the market effectively, optimizing gains in the short term while managing risks associated with the ongoing correction.

Nifty Private Banks Index Buy on dips

The current market price for the Nifty Private Banks Index is 22,681.25, indicating an upward trend in the near term. A robust support level is anticipated between 22,536 and 22,425. 

Traders are advised to seize opportunities when the index trades within this range, using it as a chance to accumulate for short-term gains. The expected target or resistance lies at 22,836 and 23,010. It's crucial to note that a close above 23,010 will likely initiate fresh buying in the near term, with the subsequent resistance set at 23,300.

The recommended trading strategy for the near term is to buy on dips, aligning with the prevailing upward trend. 

In summary, the Nifty Private Banks Index presents a favorable outlook for short-term gains. Traders are encouraged to leverage buying opportunities when the index dips within the identified support range, aligning their strategies with the overall bullish sentiment in the near term.

Nifty PSU Banks Index: Sell on rise

The current market price for the Nifty PSU Banks Index is 5,070.25, and the recommended trading strategy involves a cautious approach. Implementing a strict stop loss at 5,116, traders are advised to sell on upward movements, targeting levels of 5,000 and 4,964.

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It's crucial to note that the oversold zone is anticipated around 4,925. In the event of the index reaching this level, short-term traders are encouraged to consider accumulating positions for potential short-term gains.

This strategy is particularly relevant for investors and swing traders looking to capitalize on market dynamics. In summary, the current market conditions suggest a sell-on-rise approach for traders, with a specified stop loss and target levels. Simultaneously, the oversold zone at 4,925 presents an opportunity for short-term accumulation, aligning with the overall strategy to navigate the Nifty PSU Banks Index for optimal gains and risk management.

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

First Published: Nov 21 2023 | 6:28 AM IST

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