Bank Nifty, Private Bank indices remain bearish on charts: Ravi Nathani

If the Bank Nifty breaks support at 38,780, the index could slide all-the-way to 37,875 level.

Nifty Pvt Bank

Last Close: 19,852.80

The Nifty Private Bank Index currently stands at a CMP of 19,852.80 and upon analyzing the near-term charts, it is clear that the bearish trend has prevailed over the bullish trend, as evidenced by the lower top and lower bottom pattern observed.

However, despite the dominance of the bearish trend, there has been a sharp correction in the index prices, accompanied by high volatility, which indicates that should the index trade below 19,800 once again, another reaction of sharp correction may be witnessed.

Furthermore, the next support level as per the price action theory would be at 19,375, indicating that the bearish trend may continue in the near term. Given the current volatility in the market, it is advisable for bulls to exercise caution and only participate in trading when the index is trading around the above-mentioned support levels. These levels would be considered as oversold status on technical oscillators such as the Relative Strength Index (RSI), Stochastic, and Williams %R.

Intraday No Trade Zone: 19,981 – 19,736

Intraday Resistance Levels: 20,045 – 20,164 – 20,325

Intraday Support Levels: 19,665 – 19,510 – 19,300  

Bank Nifty Index

Last Close: 39,051.50

The Bank Nifty Index, which currently stands at a CMP of 39,051.50, has been observed to exhibit a bearish trend, as indicated by the lower top and lower bottom pattern observed on the daily charts.

It is noteworthy that the index has been experiencing a sharp correction in the near term, which could lead to the emergence of some support around 38,780. However, should the index fail to find support at this level, it is highly likely that a fresh round of selling would be triggered, which could lead to a further decline in the index prices. 

The price action theory suggests that the next support level would be at 37,875 if the index breaches the 38,780 support level. Given the current chart pattern, bearish traders are advised to proceed with caution around the 38,780 support level. Although this level could provide some hope for bullish positions, it is essential to remain vigilant and monitor the market conditions closely to avoid potential risks.

Intraday No Trade Zone: 39,281 – 38,825

Intraday Resistance Levels: 39,425 – 39,664 - 39,975

Intraday Support Levels:  38,681 – 38,381 – 38,081

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