NIFTY Financail Service Index
View: Sell on rise
The NIFTY Financial Services Index is currently trading in a range between 19,623 to 19,543, indicating that traders should be cautious in taking trades within this range.
On the upside, the index faces resistance at levels of 19,648, 19,689 and 19,754, while on the downside, support levels are seen at 19,518, 19,478 and 19,413.
The Relative Strength Index (RSI) has formed lower tops and lower bottoms, indicating a bearish trend in the near term. The current RSI reading is 69.65, which is slightly overbought. Negative divergence has been observed between the RSI and the price, suggesting that the index might face downward pressure in the near future. Hence, traders should look for shorting opportunities on a rise near resistance levels while maintaining a strict stop loss, and avoid buying until the index shows a clear reversal pattern.
NIFTY PSU Bank Index
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View: Range-bound with negative bias
Based on the current technical analysis, the overall trend for NIFTY PSU Bank is expected to be range-bound on the charts, with a no-trade zone between 4,040 to 4,002. The intraday resistance levels are 4,052, 4,071, and 4,102, while the intraday support levels are 3,990, 3,971, and 3,940.
The higher range is at 4,120, and the lower range is at 3,900. Given this scenario, traders are advised to buy near the support levels and sell near the resistance levels until a clear trend and breakout on the charts are established.
It is important to closely monitor the price action around the resistance and support levels, as a breach of these levels could signal a potential trend change. As always, traders are recommended to use stop loss orders to manage their risk exposure.
NIFTY Private Bank Index
View: Sell on rise or Book Profits near resistance
The Nifty Private Bank index is currently trading in the range between 22,444 to 22,307, indicating that traders need to exercise caution when trading in this range. On the upside, the index is likely to face strong resistance around levels of 22,486, 22,555, and 22,665, while on the downside, support can be expected near 22,265, 22,197, and 22,086.
In the short term, the trend is bullish, with the RSI number indicating a value of 70.56, but the RSI trend is showing lower top and lower bottom, which is a bearish sign.
Moreover, negative divergence in RSI suggests underperformance in the near future. Hence, traders are advised to sell on a rise or book profits near resistance levels until a clear trend emerges on the charts.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).