Here's why Ravi Nathani suggests 'sell-on-rise' method for financial sector

According to the technical analyst, since Nifty Private Bank trades in a bearish trend, with moving averages, MACD, and RSI trending downwards, this, therefore, signals a negative market sentiment

Ravi Nathani Mumbai
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Nifty PSU Bank
Last close: 3,768.55

As the index currently trades at 3,768.55 on hourly charts, it continues to trade with lower tops and lower bottoms, indicating a bearish trend.

For the index to change its trend from bearish to bullish, it needs to trade above 3,910. Since the trend is negative, the best trading strategy for traders would be to sell on the rise, with an expected target of 3,680.

Furthermore, the price action targets, along with technical indicators like Pivot points and Bollinger bands, show that the confluence levels of support are coming at 3,736 and 3,680.

Therefore, traders should adopt a sell-on-rise strategy below 3,736, as this is expected to be a small support level on hourly charts. If this level is violated, major support is expected around 3,680. It is essential to keep these levels handy while trading.

In conclusion, traders and investors should keep a close eye on the trend and support levels of the Nifty PSU Bank index while making trading decisions. With a bearish trend in place, it is wise to adopt a sell-on-rise strategy.

Nifty Private Bank
Last close: 20,777.55

As the Nifty Private Bank index trades in a bearish trend, with technical indicators such as moving averages, MACD, and RSI trending downwards, this, therefore, signals a negative market sentiment, and a fresh round of selling is expected only if the index closes below the 20,750 level.

A close below this level would be treated as a breakdown, and the next support levels are expected around 20,636 and 20,425.

Therefore, traders should adopt a sell-on-rise strategy post-breakdown, with a target of 20,425.

In summary, traders should stay cautious and take a disciplined approach in their trading strategies to mitigate risks and capitalise on potential opportunities.

Nifty Financial Services
Last close: 18,250

Since the index trades at 18,250, the narrow trading range with lower top and lower bottom formation on hourly charts suggests a bearish trend.

According to the price action theory, the index is expected to have strong support between 18,100-18,050 range. The RSI index has made a double top formation and been underperforming, indicating a potential bearish trend.

Additionally, the MACD is also signaling a bearish trend on the charts. Combining all of these points, the recommended trading strategy for traders would be to sell on any price rise, with a possible price target of 18,100.

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

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First Published: Feb 21 2023 | 7:52 AM IST

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