Charts suggest a pullback is likely for Nifty in near-term: Ravi Nathani

According to the technical analyst, the Nifty index exhibits an imminent pullback in the near-term post an oversold disposition

Nifty
Last close: 17,100.05
 

Charts suggest that the Nifty index exhibits an oversold disposition over the near-term. A diligent examination of the temporal trend signals an imminent pullback.

Moreover, after conducting a thorough analysis, the downside support levels that are expected to materialise is around 16,800.

However, if the index breaches this level, then the subsequent support levels would be situated around 16,600-16,225.

Conversely, in the event that the index exceeds the resistance level of 17,325, the subsequent resistance levels are anticipated to manifest around 17,550-17,900.

With respect to technical oscillators like Stochastic and RSI, which allude to the oversold zone, a prudent trading strategy for traders would be to seize any opportunities to buy the index on dips.

In light of evaluation, I anticipate a pullback bounce is impending on the near-term charts.

Weekly No Trade Zone: 17,264 – 16,936

Weekly Resistance Levels: 17,364 – 17,464 – 17,525  

Weekly Support Levels: 16,790 – 16,680 – 16,481

Nifty Bank
Last close: 39,598.10

Charts suggest that the bulls' last hope lies at 38,165 for the Nifty Bank index. A close below this level may trigger a downside move, which could potentially open doors for 38,200-35,700.

Hence, it is advisable for traders to exercise prudence and be cautious, and wait for the correction to be complete.

Additionally, the forthcoming Federal Reserve decision, scheduled for 22nd March 2023, is likely to impact market volatility, further necessitating a careful approach.

Weekly No Trade Zone: 40,081 - 39,100

Weekly Resistance Levels: 40,649 - 40,881 - 41,700

Weekly Support Levels: 38,581 - 38,316 - 37,549

(Ravi Nathani is an independent technical analyst. Views expressed are personal).