Nifty Financial Services Index
The Nifty Financial Services Index, currently trading at 21,249.80, has recently experienced a correction but is showing early signs of a potential rebound on daily charts. Traders may find it opportune to adopt a strategy of buying the index and its constituents at lower levels or at the current market price (CMP).
Key support levels and technical indicators suggest potential upside momentum for the index. Traders could target levels around 21,400, 21,535, and 21,675 as potential upside targets.
The strength displayed by technical indicators such as Stochastic, MACD, and RSI on near-term charts supports the notion of buying on dips. Considering the recent correction and the emergence of bullish signals on the charts, traders may view declines in the index as opportunities to enter long positions.
However, it’s important to manage risk effectively by placing stop-loss orders and monitoring price action closely. In summary, the best trading strategy for the Nifty Financial Services Index in the near term could be to buy on dips or at the current market price, with target levels around 21,400, 21,535, and 21,675.
Traders should remain vigilant of market conditions and adjust their positions accordingly to maximise potential gains while mitigating risks.
Nifty PSU Banks Index
The Nifty PSU Banks Index, currently trading at 6,987.30, is showing signs of a potential technical bounce in the near term. Traders may find it advantageous to adopt a strategy of buying the index on dips.
Key support levels and leading technical indicators suggest a possible rebound in the index. Traders could target levels around 7,160, 7,262, and 7,365 as potential upside targets. The indications from leading indicators further reinforce the notion of a technical bounce in the near term.
Given the expected bounce, traders may view declines in the index as opportunities to initiate long positions. However, it’s crucial to implement risk management measures such as placing stop-loss orders and closely monitoring price movements.
In summary, the best trading strategy for the Nifty PSU Banks Index in the near term could be to buy on dips, with target levels around 7,160, 7,262, and 7,365.
Traders should remain attentive to market developments and adjust their positions accordingly to capitalise on potential gains while managing risks effectively.
(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: May 14 2024 | 6:28 AM IST
