 "Nifty IT in bearish trend; Nifty Auto index rangebound; how to trade today?")
Nifty IT Index: Downtrend Continues; Sell on Rise
The Nifty IT Index today is exhibiting a bearish trend in the near-term with charts signaling further downside potential. Traders are advised to adopt a sell-on-rise strategy, targeting 42,300 as the immediate level to watch.
Should the index close below 42,300, the next downside target is projected at 41,300, marking a significant support zone. Technical indicators, including MACD, RSI, and Stochastic, reinforce the bearish sentiment, as they indicate ongoing underperformance in both the index and Nifty IT stocks.
The momentum remains weak with no signs of immediate recovery, suggesting limited opportunities for bullish trades in the near term. The best trading approach for both traders and investors is to remain cautious and look for shorting opportunities during any upward corrections in the Nifty IT share price.
For those seeking safer entries, it is prudent to wait for a decisive break below 42,300, which would confirm the continuation of the downtrend and open doors for further downside targets.
Nifty Auto Index: Consolidation Phase, Range-Bound Strategy
The Nifty Auto Index is currently in a consolidation phase, trading within a well-defined range of 24,250 on the higher side and 22,600 on the lower side. This pattern suggests a period of sideways movement in the near and short term, as reflected on the Nifty Auto charts.
For safe traders, the best approach is to avoid trading in Nifty Auto share price and Nifty Auto stocks until a decisive breakout or breakdown occurs. Patience is key in such a range-bound market, as trading within the consolidation range carries higher risks.
On the other hand, risky traders may consider adopting a range-bound trading strategy by buying near lower support levels of 23,125, 22,800, and 22,680, with a strict stoploss at 22,600 on a closing basis and selling near the upper resistance level of 24,250, capitalising on the index's inability to breach this ceiling in the near term.
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Technical indicators, such as RSI and MACD, further confirm the sideways movement, reflecting the lack of clear directional momentum.
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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.