Nifty Financial Services index may break below this level; check details

The index is expected to find support in the near term between the range of 19,375 and 19,290

Nifty Finance Services Index

The Nifty Finance Services Index is currently trading at a CMP of 19,399.75. The index is currently at the edge of a breakdown level, which is around 19,375. This level also coincides with the 20-day Exponential Moving Average (EMA) for the index. Based on historical patterns, the index finds support at the 30-day EMA which is currently at 19,290. Therefore, it is expected that the index will find support in the near term between the range of 19,375 and 19,290.

It is important to note that a close below this support range would indicate a negative breakdown on the index. The overall trend of the index is corrective, which means it is experiencing a time-wise correction resulting in consolidation between the levels of 19,100 and 19,650. Given the current scenario, the recommended trading strategy would be to buy near support levels (around 19,375 - 19,290) and sell near resistance levels (around 19,650) until a clear breakout is observed on the charts.

Nifty Pvt Banks Index

The Nifty Private Banks Index is currently trading at a CMP of 22,465.75. Based on the chart analysis, the index is currently in a range-bound phase with the range defined between 22,250 and 22,675. A trade above or below this range would act as a trigger for the next directional move.

On the lower side, support levels are expected around 22,150 and 21,925. These levels can be considered as potential buying opportunities as the overall trend on the charts is bullish. Given the current scenario, the recommended trading strategy would be to buy on dips, taking advantage of the support levels, as the trend is bullish for the Nifty Pvt Banks Index. 


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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He does not hold any positions in the Indices mentioned above.