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Nifty Financial Services Index
The Nifty Financial Services Index, which last closed at 20,627, is indicating a downtrend in the near term as observed on charts. A fresh round of selling is expected once the index breaks below the level of 20400.
In such a scenario, the next target or support on charts for this week would be around 20100 and 19825. The recommended trading strategy for this index would be to sell on rallies, as resistance on charts is expected around 20800 and 20950.
The RSI (Relative Strength Index) for this index is showing a downward trend, indicating weakness, while the EMA (Exponential Moving Average) for short and near term are trending lower, further supporting the expectation of underperformance in the coming days.
In summary, the Nifty Financial Services Index is currently in a downtrend, with support and resistance levels identified. Traders are advised to sell on rallies, considering the indications from both technical indicators and chart patterns.
Nifty PSU Banks Index
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The Nifty PSU Banks Index, which last closed at 6,782, is exhibiting a range-bound pattern on charts, with boundaries set at 6,864 on the upside and 6,564 on the downside. A close above or below these levels would serve as triggers for potential directional movements in the index.
If the index breaches the upper range of 6864, the next resistance levels on charts are anticipated at 7000 and 7225.
Conversely, if it violates the lower end of the range, support levels are expected at 6300 and 6000. Technical indicators such as MACD and RSI are displaying a flatish behavior, indicating a lack of clear directional momentum.
In such circumstances, the recommended trading strategy would be to wait for a breakout above the upper range or below the lower range before initiating any positions.
In summary, the Nifty PSU Banks Index is currently range-bound, with key levels identified for potential breakout scenarios.
Traders are advised to exercise caution and wait for confirmation of a breakout before making trading decisions, considering the indications from technical indicators.
Disclaimer: Ravi Nathani is an independent technical analyst. 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.
