Charts signal Nifty Auto index to bounce back in near-term: Ravi Nathani

According to the technical analyst, charts suggest rapid technical bounce for the Nifty Auto index, wherein traders can anticipate a price recovery

Nifty PSU Bank
Last close: 3,675.45
 

Charts indicate that the index is exhibiting signs of weakness in the near term. This weakness is evidenced by a potential for fresh round of selling if the index fell below the critical threshold of 3,580. In such an event, the subsequent levels of support are expected to be around 3,465 and 3,300.

Bullish traders, who seek to benefit from an upward price movement, are advised to proceed with caution. It is recommended that these traders wait until correction is complete before entering a long position. This strategy is rooted in the belief