Nifty Bank: Traders may consider profit booking at 49,800-49,900 levels

Nifty Financial Services Index

The Nifty Financial Services Index is currently exhibiting an upward trend on the charts. However, traders should note that stiff resistance is anticipated around the 22,000 and 22,800 levels. In light of this, the optimal trading strategy would be to exercise caution and wait for the index to approach these resistance levels before considering booking profits.
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.

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