Will bulls stage comeback on D-Street? Here's what analysts suggest

Nifty 50 Index

The Nifty 50 Index is currently displaying a bullish trend on the charts, signaling a positive outlook for the near term. However, it's important to keep an eye on the key levels of 24,625 and 24,800. A close above 24,800 would likely add additional momentum to the current bullish trend. If this level is breached, the next resistance levels to watch would be 24900, 25010, and 25265 as the final target in this bullish phase.

For traders looking to capitalize on this momentum, the best strategy would be to buy on dips, taking advantage of any temporary pullbacks to enter the market. However, it's crucial to manage risk effectively by setting a strict stop-loss at 24225 on a closing basis. This stop-loss ensures that if the market unexpectedly reverses, potential losses can be minimized.

 

In summary, the Nifty 50 Index is poised for further gains, with key resistance levels identified as 24900, 25010, and 25265. The recommended approach for traders is to buy on dips while maintaining a strict stop-loss at 24225 to protect against any downside risk.

Nifty Midcap Select Index

The Nifty Midcap Select Index has recently broken out of a consolidation phase, indicating a bullish outlook for the near term. This breakout suggests that buying on dips should be the preferred strategy for traders looking to capitalize on the index's upward momentum. The expected resistance levels for this week are set at 12825, 12910, 13000, and 13200.

If the index manages to rise above 13200, it would enter an overbought zone for the near term. In such a scenario, traders should be cautious and consider halting further buying or even booking profits on all bullish positions above this level. The overbought condition might lead to a temporary pause in the upward trend or even a correction.

To protect against downside risk, it is crucial to place a strict stop-loss below 12480 on a closing basis. This stop-loss level ensures that if the market reverses unexpectedly, losses can be minimized. Adhering to this stop-loss is essential, especially given the potential volatility after a breakout.

In summary, the Nifty Midcap Select Index is currently in a bullish phase following its breakout. The best strategy is to buy on dips, aiming for the resistance levels mentioned above. However, traders should be prepared to book profits if the index enters the overbought zone above 13200 and must always keep a stop-loss below 12480 to manage risk effectively.

(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.)