Nifty Bank Index
The Nifty Bank Index, which last closed at 47456, is currently exhibiting a range-bound trend on charts. The identified range spans from 47600 on the upside to 47200 on the downside.
A close above or below this range is considered a triggering point, indicating potential directional movements. A breach above 47600 would suggest a potential upward movement, with the next resistance levels expected at 47786, 48280, and 48400.
On the flip side, if 47200 is broken, the next support levels on charts would be at 46800, 46325, and 45500. These levels become crucial indicators for traders to assess potential rebounds or extended downward movements.
Technical indicators, specifically MACD, are displaying a flat trend, and near-term Exponential Moving Averages (EMA) are also flat.
This signals a lack of clear trend direction in the near term. Given this technical landscape, the recommended trading strategy is to wait for a breakout before initiating trades.
The suggested approach aligns with the market’s current indecisiveness, and waiting for a confirmed breakout provides traders with a more informed basis for decision-making.
It ensures that the market’s chosen direction is validated before committing to positions. In summary, the Nifty Bank Index is presently range-bound between 47600 and 47200.
Traders are advised to await a breakout and then trade accordingly based on the confirmed direction. This patient approach considers the technical indicators’ flat trends and provides a strategic framework for navigating the current market conditions.
Nifty Private Banks Index
The Nifty Private Bank Index, which last closed at 23780, is currently displaying a range-bound trend on charts.
The identified range extends from 23964 on the upside to 23536 on the downside. A close above or below this range is seen as a triggering point, indicating potential directional movements.
Conversely, if the lower limit at 23536 is broken, the next support levels on charts would be at 23450, 23100, and 22725.
These levels serve as crucial indicators for traders to assess potential rebounds or extended downward movements.
Multiple technical indicators are currently displaying a flat trend, indicating a lack of clear direction in the near term. Given this market condition, the recommended trading strategy is to wait for a breakout before initiating trades.
Disclaimer: Ravi Nathani is an independent technical analyst. 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: Mar 05 2024 | 6:59 AM IST