Nifty Bank Index: Buy on Dips Near Support Levels
These levels are crucial for maintaining the current bullish structure of the index, and buying at or near these support zones would offer a favourable risk-reward ratio. On the upside, the first major hurdle is at 51,500, which, if breached, could lead to further gains.
The next resistance levels are expected at 51,825, 52,350, and 52,835. A close above 51,500 would likely trigger additional momentum in the upward direction, providing more opportunities for short-term traders to profit. My recommendation remains to buy on dips around the identified support levels, as the overall trend remains positive in the short term.
Nifty Private Banks Index: Buy on Dips for a Technical Bounce
The Nifty Private Banks Index has seen a sharp correction recently, bringing it to levels where a technical bounce could soon be expected. Similar to the Nifty Bank Index, buy on dips is the most suitable trading strategy for both near- and short-term traders.
Key support levels to watch are 25,100 and 24,800, where buyers are likely to step in and provide support to the index. On the upside, resistance is expected at 25,820, 26,100, and 26,400. Traders can look to book profits near these levels after entering positions around the support zones.
The index shows bullish potential, and with the recent correction, the stage is set for a recovery, making it an opportune moment to accumulate positions. My vote remains bullish, favouring a buy on dips approach in anticipation of a rebound.
Conclusion
Both the Nifty Bank Index and Nifty Private Banks Index are trading near their key support levels, offering attractive entry points for traders. The Nifty Bank Index has strong support at 50,400, 50,200, and 49,700, with upside resistance at 51,500 and beyond. Similarly, the Nifty Private Banks Index has support at 25,100 and 24,800, with resistance around 25,820 and 26,400. The best trading strategy for both indices is to buy on dips, as a technical bounce is expected, providing opportunities for short-term gains.
(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: Oct 09 2024 | 7:05 AM IST
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