Master the Market with Confidence: Proven Strategies to Trade Nifty Financial Services and PSU Bank Indices on Sept 24
Nifty Financial Services Index Approaching Key Resistance Level
The Nifty Financial Services Index has neared the significant resistance level of 25,000, a critical benchmark for short-term traders. A close above this level could spark bullish momentum, propelling the index higher. However, technical indicators suggest caution due to the index appearing overextended. In light of this, traders are advised to book profits at the current market price (CMP) and await a potential pullback before considering new long positions.
The recommended near-term strategy is to "sell on rise," aligning with the anticipated pullback. Support levels to watch for re-entry are 24,425, 24,050, and 23,750, presenting more advantageous entry points for bullish positions once the market corrects. Thus, while maintaining a bullish outlook, prudence is advised with profit booking at current levels and waiting for the market to correct towards the support zones before adding fresh positions.
Nifty PSU Bank Index Trading in a Range
The Nifty PSU Bank Index is trading within a defined range, supported at 6,500 and resisted at 7,100, reflecting market indecision. The optimal strategy within this range is to buy near the support level of 6,500 and sell near the resistance at 7,100. A close above 7,100 could trigger a bullish move, while a close below 6,500 might indicate a bearish breakdown.
Traders should closely observe price movements around these levels for a clear breakout or breakdown, providing directional clarity. Until then, range trading with tight stop-losses remains the prudent approach, buying near support and selling near resistance.
Disclaimer: Ravi Nathani is an independent technical analyst. The views expressed are his own and do not represent an offer or solicitation to buy or sell any security. This should not be interpreted as a recommendation for such securities.
Original Story https://www.business-standard.com/markets/news/here-s-how-to-trade-nifty-financial-services-psu-bank-indices-on-sept-24-124092400057_1.html
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