Nifty Fin Svcs, PSU Bank rangebound; time to be cautious? What analysts say | News on Markets

Nifty Financial Services Index: Range-Bound Movement

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The Nifty PSU Bank Index is also trading in a range-bound pattern, with a defined range of 6,700 to 6,510. This consolidation phase suggests that the index is taking a breather, and a breakout in either direction will provide clarity on the next move. If the index breaks above 6,700, the next resistance levels are 6,790 and 6,950. Traders looking to capitalize on a bullish trend should consider buying after a confirmed breakout above 6,700.

If the index falls below 6,510, further downside could be seen, with support at 6,420 and 6,260. Traders should avoid buying in the range until support levels are tested.

Best Trading Strategy: Like the Nifty Financial Services Index, traders should adopt a cautious approach and wait for a clear breakout before taking new positions. Risk-takers can trade within the range by buying near support and selling near resistance, but maintaining a stop-loss based on the breakout levels is essential.

 

Both the Nifty Financial Services Index and the Nifty PSU Bank Index are consolidating within well-defined ranges. A breakout in either direction will trigger strong moves, so traders should remain patient and wait for the respective ranges to break. For now, the best strategy is to trade cautiously within the range or wait for a breakout before taking new positions.

(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.)