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Nifty50, Nifty Financial, PSB indices: Check key levels for trading action

If Nifty closes above 22,225, the next resistance levels on the charts would likely be around 22,350 and 22,575

Markets, bulls, bears, stocks, trading, technicals, market technical, technical analysis
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Ravi Nathani Mumbai

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Nifty 50 Index

The Nifty 50 Index, which last closed at 22,097, is currently confined within a short-term range bounded by 22,225 on the upside and 21,950 on the downside.

A decisive close above or below this range would provide a clearer direction for the index on the charts. If the index closes above the upper boundary of 22,225, the next resistance levels on the charts would be expected at 22,350 and 22,575.

Conversely, if it closes below the lower boundary of 21,950, the next support levels on the charts would likely be around 21,836 and 21,625.

Traders are advised to closely monitor the price action and await a breakout from this range to determine potential trading opportunities. Confirmation of a breakout above or below the range can guide traders in establishing positions aligned with the prevailing market direction.

Nifty Financial Services Index

The Nifty Financial Services Index, which last closed at 20,784, is anticipated to exhibit bullish behavior in the near term only if it manages to close above the range of 20,925 to 21,000.

In the event of such a close, the next resistance levels on the charts would be at 21,050 and 21,275. However, until this condition is met, the index is expected to underperform in the near term.

Support levels on the charts are identified at 20,650, 20,525, and 20,280. Given this outlook, the recommended trading strategy would be to sell on any upward movement, or "sell on rise," with a stop loss set at 21,000 on a closing basis.

This approach allows traders to capitalize on potential downside movements while managing risk effectively. Traders should closely monitor the price action and adhere to the specified levels for making informed trading decisions aligned with the prevailing market conditions in the Nifty Financial Services Index.

Nifty PSU Bank Index

The Nifty PSU Bank Index, which last closed at 6,888, is experiencing a downtrend in the near term. The recent rally observed in the index is considered to be a technical bounce rather than a reversal of the trend.

Resistance levels on the charts are anticipated at 6980 and 7080, indicating potential selling pressure at these levels.

On the other hand, support levels on the charts are identified at 6780, 6700, and 6525.

Given this outlook, the recommended trading strategy would be to look for opportunities to sell on any upward movement, or "sell on rise." This approach allows traders to capitalize on potential downside movements while aligning with the prevailing downtrend in the index.

Traders should remain vigilant and monitor the price action closely to identify suitable entry and exit points based on the specified resistance and support levels in the Nifty PSU Bank Index.

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.

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First Published: Mar 26 2024 | 7:10 AM IST

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