Nifty PSU Bank, Finance indices likely to pullback, says Ravi Nathani

Meanwhile, the NIFTY Pvt Banks Index is expected to seek support between 19,936 and 19,916 range, says the technical analyst.

Nifty Finance Index

Outlook: Technical Pull Back Expected

Last close: 18,091.25 

The Indian stock market has been volatile lately, and the Nifty Finance Index has felt the impact of this instability. Despite a sharp drop of over 1,800 points in the last 33 trading sessions, which has caused concern among market participants, it appears that this index will trade within a defined range of 18,400 to 17,570.

This prognosis is the result of a technical pullback after a correction, which is a common occurrence in financial markets.

For traders, the best strategy in such circumstances remains to sell near resistance levels and buy when prices dip, based on the principle of buying low and selling high.

It is crucial to maintain a strict stop loss of 17,570 on a closing basis to manage risk and minimize losses. If the 17,570 support level is breached, the next support is estimated to be around 16,800, so traders must be prepared for this possibility.

No Trade Zone: 17,980 – 18,200  

Expected Weekly Resistance: 18,275 – 18,425 - 18,700

Expected Weekly Support: 17,925 – 17,800 – 17,625

Nifty PSU Bank Index

Outlook: Technical Pull Back Expected

Last close: 3,842.10

I have been closely monitoring the NIFTY PSU Bank INDEX and I have noted a downward trend in the near term. Despite the sharp fall observed during the recent five trading sessions, I anticipate a potential technical pullback.

The resistance level around 4,010 is expected to be substantial, and I advise traders to utilize this level to exit their long positions. The index is likely to consolidate with a negative bias and my projection for the final support/target level is 3,500.

No Trade Zone: 3,795 – 3,890  

Expected Weekly Resistance: 3,949 – 4,049 - 4,164

Expected Weekly Support: 3,736 – 3,650 – 3,525

Nifty Private Banks Index

Last close: 20,645.70

The NIFTY Pvt Banks Index is currently experiencing a downward trend in the near term. However, there is a strong support level expected to emerge between 19,936 and 19,916. If the index falls below this range, it is anticipated that a fresh round of selling will ensue.

Yesterday's smart recovery from a low has hinted at the possibility of a near-term technical pullback, with resistance expected to arise between 20,800 and 20,950.

This range should be viewed as another opportunity to sell as the markets are projected to trade sideways for a while until the impact of the Budget commentary and global events becomes clearer.

No Trade Zone: 20,481 – 20,810  

Expected Weekly Resistance: 20,925 – 21,210 - 21,750

Expected Weekly Support: 20,280 – 20,050 – 19,950

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