Here's why Ravi Nathani is optimistic on the financial sector

According to the technical analyst, the Nifty Private Bank, PSU Bank and Financial Services indices may extend the pullback in the near term.

Nifty Pvt. Bank Index

Last close: 21,543.90

In the last 20 trading sessions index is making a triangle shape pattern on charts. The previous lowest closings are 21,122 and 21,455. If we connect these two price points, Nifty Pvt. Bank Index will get a sloping trend line and has just closed above this sloping trend line support.

As this Index saw a sharp recovery from the intraday lows and closed with a positive candle, resulting in a bullish momentum that could be expected the next day.

As the index is trading in a range of 22,000 – 21,500 and currently trading just around the