2 min read Last Updated : Aug 20 2024 | 6:42 AM IST
Nifty Financial Services Index
The Nifty Financial Services Index is showing a positive outlook, supported by favourable technical indicators like RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence). These indicators suggest that the index is likely to maintain its bullish momentum in the near term. The best trading strategy for this index would be to buy on dips, particularly when the index approaches support levels.
Traders should place a strict stop-loss at 22,800 on a closing basis to manage potential downside risks. The target resistance levels to watch for this week are 23,150, 23,300, and 23550. These levels are critical, as the index could face resistance at these points. However, if the bullish momentum continues, these targets could be achieved, providing an opportunity for traders to book profits.
Nifty PSU Banks Index
The Nifty PSU Banks Index is currently trading within a range of 6,900 to 6,970. A close above or below this range could trigger a significant move in either direction. However, given the positive trend on the charts, along with supportive technical indicators such as Stochastic and RSI, the best strategy would be to buy on dips. The short-term moving averages are also inching higher, indicating underlying strength in the index.
Traders should focus on buying near support levels, anticipating that the index will eventually break out to the upside. The target price for the near term is 7,100. This target is achievable if the index manages to sustain its positive momentum, making it a good opportunity for traders to capitalise on potential gains.
Conclusion
Both the Nifty Financial Services Index and the Nifty PSU Banks Index exhibit positive trends and are supported by strong technical indicators. The recommended approach for traders is to buy on dips, with well-defined stop-loss levels to manage risk. For the Nifty Financial Services Index, key resistance levels are 23,150, 23,300, and 23,550, while the Nifty PSU Banks Index is expected to reach 7,100 in the near term.
(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 20 2024 | 6:42 AM IST