The NIFTY Financial Services Index, which recently rose, has now settled into a narrow range of 24,000 to 23,950. A breakout above or below this zone could generate momentum in the corresponding direction.
Currently, technical indicators and chart patterns indicate that the index is overbought, implying that a correction or pullback is probable in the near term. Given the current market conditions, the best approach for traders and investors would be to book profits on any uptick, as the index appears to be headed for a deeper fall.
A descent to the 23,500, 23,300, and 23,100 support levels would offer excellent chances to purchase the index and its components for a quick profit. Since these levels provide good entry points for long positions once the correction is finished, they should be regularly watched.
The NIFTY PSU Bank Index is presently displaying a short-term downtrend, signifying a brief reversal within its broader bullish trend. The charts' predicted support levels are 6,570 and 6,300, which are important regions where the index may stabilize before picking up speed again.
The wisest course of action for traders and investors would be to hold off on building positions until the index approaches these support levels.
The current pullback is viewed as a corrective phase, providing an opportunity to enter the market at advantageous levels. Once the index has stabilized around 6,570 or 6,300, traders can consider buying the index and its constituents for short-term gains. Despite the near-term pullback, the long-term picture is strong, and the current dip is part of a larger trend.
