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Nifty Fin Services, PSU Bank signal resistance on charts: Check key levels

The Nifty Financial Services Index is currently priced at 21,743.70 and is exhibiting notable support and resistance levels in the near term

Stock market, markets, shares
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Stock market, markets, shares

Ravi Nathani Mumbai

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Nifty Financial Services Index

The Nifty Financial Services Index is currently priced at 21,743.70 and is exhibiting notable support and resistance levels in the near term. At present, the index is strongly supported around the 21,700 mark. 

A breach below this level would signal potential downward movement, with subsequent support levels expected at 21600 and 21,400. Conversely, significant resistance is observed around the 22,000 level. 

A decisive close above this resistance could indicate a bullish breakout in the near term. Traders should consider placing strict stop-loss orders for all short positions in case the index closes above 22,000, as this scenario could invalidate bearish expectations. 

The range between 21,700 and 22,000 is crucial, and a close above or below this range would serve as a trigger for the next directional move. Traders are advised to closely monitor price action within this range and adjust their positions accordingly based on breakout signals. 

Overall, maintaining vigilance around these key levels and responding prudently to breakout signals will be crucial for navigating trading opportunities in the Nifty Financial Services Index in the near term.

Nifty PSU Banks Index

The Nifty PSU Banks Index, currently priced at 7,252.85, has displayed a notable trading range on hourly charts, presenting traders with key support and resistance levels to monitor. 

The index is currently trading within a range of 7,300 to 7,200. A decisive close above or below this range on hourly charts could serve as a trigger for directional movements in the market. On the upside, resistance levels are anticipated at 7350, 7440, and 7625.

Conversely, support levels are expected at 7,100, 6,800, and 6,575. Given the significance of this 100-point range, traders are advised to closely observe price action and market developments within this range. 

Monitoring the hourly charts and reacting promptly to breakout signals can help traders make informed decisions and capitalise on potential trading opportunities. 

In summary, maintaining a strict watch on the 7,300-7,200 range and adjusting trading positions based on breakout signals can be an effective strategy for navigating trading opportunities in the Nifty PSU Banks Index.

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.

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First Published: May 07 2024 | 6:34 AM IST

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