Is it a good time to sell Nifty 50, Mid Select Index? Check details here

Nifty Index Analysis

The Nifty Index is currently trading at 23,465.60. On near-term charts, the index is positioned in the oversold zone, suggesting that selling pressure will likely emerge on any rise. Stiff resistance is anticipated between 23,575 and 23,600. A close above this resistance range could push the index towards 23,800. Conversely, the index is expected to find support at 23,100.

Given this setup, the best trading strategy would be to sell either at the current market price (CMP) or on any rise. The target price for this strategy should be 23,100. If the index breaks below 23,100, the next support level would be 22,900.

In summary, traders should consider shorting the index at CMP or on any upward movement, aiming for the 23,100 support level as their primary target. If the index continues to decline, the next target should be 22,900. This approach is supported by the oversold conditions on the charts, indicating potential for continued downward momentum in the near term.

Nifty Mid Select Index Analysis

The Nifty Mid Select Index is currently trading at 12,053.20. On near-term charts, the index appears overextended, indicating that selling pressure is likely to be witnessed either at the current market price (CMP) or on any rise. Given this technical setup, the best trading strategy would be to sell the index and its constituents on any upward movement.

The first support level to target is 11,750, with a second support level at 11,575. This strategy is backed by the overbought condition of the index, which suggests that the recent rally might be due for a pullback. Selling on rise or booking profits at the CMP would be prudent for traders looking to capitalise on the anticipated downward movement.

In summary, traders should consider shorting the index or booking profits at CMP, targeting 11,750 as the initial support level and 11,575 as the secondary support level. This approach aligns with the overextended condition of the index, providing an opportunity to benefit from the expected correction in the near term.

(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.)