Nifty Fin Svcs, PSU Bank may turn bullish soon, say charts; check levels

Nifty Financial Services Index

The Nifty Financial Services Index is currently trading at 21,965.60. In the near term, the trend is up; however, the index has reached a stiff resistance level at 22,150. A sustained close above 22,150 is required to trigger fresh bullish momentum. Conversely, if the index consistently trades below 21,850, the next support levels on the charts are 21,675 and 21,550. 

Given the proximity to the resistance level, the best trading strategy would be to book profits on the rise and wait for a pullback to the support levels mentioned above. This cautious approach allows traders to capitalise on potential reversals near the resistance while positioning themselves for buying opportunities at lower, more supportive levels. 

In summary, monitor the key levels closely: book profits if the index approaches 22,150 without breaking through, and look to re-enter at the supports around 21,675 and 21,550 for optimal risk management and potential gains.

Nifty PSU Bank Index

The Nifty PSU Bank Index is currently trading at 7,456.75. The near-term trend is bullish on the charts; however, the index is approaching a significant resistance zone between 7,500 and 7,590. 

If the index successfully breaks through this range, the next resistance levels to watch are 7,685 and 7900. On the downside, if the index breaks below 7360 on a closing basis, the subsequent support levels would be 7265, 7160, and 7050. 

Given this setup, the best trading strategy would be to book profits on the rise as the index approaches the resistance zone and wait for a pullback to the support levels mentioned above.

In summary, with the index nearing key resistance levels, it is prudent to lock in gains and wait for a potential dip to re-enter. This approach helps manage risk while positioning for potential upward moves once the index finds support. Keep an eye on the critical levels of 7360, 7265, 7160, and 7050 for buying opportunities on a pullback.

(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.)