Nifty Bank: Traders may consider profit booking at 49,800-49,900 levels - Business News, Finance News, Share Market News - Market trendz

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Wednesday 1 May 2024

Nifty Bank: Traders may consider profit booking at 49,800-49,900 levels


Nifty Financial Services Index

The Nifty Financial Services Index is currently exhibiting an upward trend on the charts. However, traders should note that stiff resistance is anticipated around the 22,000 and 22,800 levels. In light of this, the optimal trading strategy would be to exercise caution and wait for the index to approach these resistance levels before considering booking profits.
Given the sharp rally observed in the short term, it is prudent to be cautious near resistance levels. Traders should closely monitor price action and assess the strength of buying and selling pressure around the resistance zones. If the index fails to convincingly break above these resistance levels and shows signs of stalling or reversal, it may be an opportune time to consider booking profits on existing positions.
On the downside, support levels are expected around 21,400 and 21,200. These levels can serve as reference points for traders to gauge the strength of any potential pullbacks or reversals. If the index experiences a retracement towards these support levels, traders may consider reassessing their positions based on the prevailing market conditions and technical indicators.

The Nifty Bank Index
The Nifty Bank Index has experienced a sharp rally in the near term, prompting traders to consider profit booking strategies. Given the current market conditions, it is advisable for near-term traders to capitalise on the recent gains by booking profits either at the current market price (CMP) or on any further rise in the index. Resistance levels are anticipated around 49,800 and 49,900 on the charts.
These levels are likely to attract selling pressure as traders look to take profits from the recent uptrend. Therefore, traders should closely monitor price movements around these resistance levels and consider initiating profit-taking measures accordingly.
On the downside, support levels are expected to be around 48,800 and 48,600 on the near-term charts. These support levels may provide some cushion in case of a pullback or retracement in the index. Traders should be prepared to reassess their positions if the index approaches these support levels, as they could potentially act as areas of buying interest. 

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