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Nifty Financial Services Index
Given the sharp rally observed in the short term, it is prudent to be cautious near resistance levels. Traders should closely monitor price action and assess the strength of buying and selling pressure around the resistance zones. If the index fails to convincingly break above these resistance levels and shows signs of stalling or reversal, it may be an opportune time to consider booking profits on existing positions.
On the downside, support levels are expected around 21,400 and 21,200. These levels can serve as reference points for traders to gauge the strength of any potential pullbacks or reversals. If the index experiences a retracement towards these support levels, traders may consider reassessing their positions based on the prevailing market conditions and technical indicators.
The Nifty Bank Index
These levels are likely to attract selling pressure as traders look to take profits from the recent uptrend. Therefore, traders should closely monitor price movements around these resistance levels and consider initiating profit-taking measures accordingly.
On the downside, support levels are expected to be around 48,800 and 48,600 on the near-term charts. These support levels may provide some cushion in case of a pullback or retracement in the index. Traders should be prepared to reassess their positions if the index approaches these support levels, as they could potentially act as areas of buying interest.
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Disclaimer: Ravi Nathani is an independent technical analyst. Views are his own. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. It should not be construed as a recommendation to purchase or sell such securities.
First Published: Apr 30 2024 | 8:17 AM IST