Nifty PSU Bank, Private Bank bearish; time to accumulate? Analyst weighs | News on Markets

by

[ad_1]

3 min read Last Updated : Aug 14 2024 | 7:03 AM IST


Nifty PSU Bank Index

The Nifty PSU Bank Index is currently experiencing a downward trend in the near term. However, the index has recently undergone a sharp correction, bringing it very close to critical support levels at 6,680, 6,570, and 6,450.

Given the proximity to these support zones, the best trading strategy for the near term is to avoid initiating fresh short positions. Instead, traders and investors should consider accumulating the index near these support levels.

The overall mid-term trend for the Nifty PSU Bank Index remains bullish, and the current correction should be viewed as a pullback within this larger uptrend. As the index approaches the aforementioned support levels, it presents a strategic opportunity to buy into the bullish trend at more favorable prices.

Investors should remain patient and look to accumulate the index gradually as it stabilizes near these support zones, positioning themselves for potential gains as the index resumes its upward trajectory.


Nifty Private Bank Index


The Nifty Private Bank Index is currently range-bound, with a trading range of 24,800 to 25,400. A close above or below this range would serve as a trigger for a directional move. As the index is trading close to the lower end of this range, it is crucial to closely monitor the 24,800 level. A close below this level could lead to further downside, with the next support level at 24,300.

If the Nifty Private Bank Index reaches the 24,300 level, traders and investors should consider accumulating the index and its constituents for a short-term trade. Despite the range-bound nature of the current market, the overall trend on the charts remains bullish.

This presents an opportunity to buy the index on dips, particularly near the lower end of the range, as the bullish trend is expected to continue in the medium term.

In summary, both the Nifty PSU Bank Index and Nifty Private Bank Index are presenting buying opportunities on dips. The Nifty PSU Bank Index is nearing critical support levels after a sharp correction, making it a good candidate for accumulation.

Meanwhile, the Nifty Private Bank Index is range-bound, with potential for accumulation near the lower end of its trading range. In both cases, the overall bullish trend suggests that these dips could offer attractive entry points for traders and investors looking to capitalize on the expected upward momentum.

(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.)

First Published: Aug 14 2024 | 6:55 AM IST

[ad_2]

Source link

Leave a Comment