Nifty Fin Services, Nifty Pvt Bank showing signs of rebound, suggest charts

Nifty Financial Services Index

The Nifty Financial Services Index, currently trading at 21,326.50, appears to be poised for a near-term bounce, potentially representing a technical rebound on the charts. Resistance levels are anticipated around 21,550, with a suggested stop-loss placed above 21650. 

Should the index successfully close above 21650, there's a higher likelihood of it outperforming in the near and short term, with a target of 22000. Conversely, it's crucial to monitor the level of 21200 closely. 

A trade and close below this level could signify a shift in sentiment, triggering another round of selling pressure. In such a scenario, support is expected around 20980 and 20800. 

Traders should remain vigilant of these key levels, as they can provide valuable insights into market dynamics and potential trading opportunities. 

A bullish stance would be warranted if the index closes above 21650, while a close below 21200 could lead to further downside momentum. 

Effective risk management and adherence to trading strategies are essential for navigating the market's uncertainty and maximising trading outcomes.

Nifty PVT Banks Index

The Nifty Private Banks Index, currently trading at 23,974.05, is exhibiting similar movements to the Financial Services Index, showing a range-bound pattern in the near term. The range for this index is identified between 24,100 and 23,900, with a breakout above or below this range potentially indicating the next directional move. 

Resistance levels are anticipated between 24,275 and 24,400. A close above 24,400 could signal bullish momentum, possibly leading to a new high for the index. Conversely, a close below 23,900 may trigger downside pressure, with support levels expected at 23,550, 23,280, and possibly 22,800 in an extreme scenario. 

A drop to 22,800 would likely indicate oversold conditions in the near term. Traders should monitor price movements closely within this range-bound scenario and consider their trading decisions accordingly. 

Adhering to strict risk management practices and adjusting trading strategies based on price action and key support/resistance levels can help optimise trading outcomes in the current market environment.

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