Nifty 50 & Midcap Select: Check support, resistance and other details here

Nifty 50 Index Analysis
 

The Nifty 50 Index has reached a new lifetime high, reaffirming the bullish trend on the charts. The next resistance levels are projected to be at the significant marks of 25,050 and 25,336. Despite this upward movement, caution is advised as the Relative Strength Index (RSI) is indicating a negative divergence. This suggests that while the index is climbing, underlying momentum may be weakening.

For traders and investors, it is crucial to monitor the 24,070 level closely. This level now serves as the new trend reversal point. If the index breaks below this level, it would signal the beginning of a bearish trend. Until then, the bullish outlook remains intact for the near and short term, with bulls expected to maintain their strength.

 

Expected support levels for the week are at 24,681, 24,550, and 24,464. These levels should provide some cushion in case of pullbacks. The current market environment suggests that while the overall trend remains bullish, traders should be prepared for potential corrections due to the negative RSI divergence.

In conclusion, the Nifty 50 Index is on a bullish trajectory with key resistance at 25,050 and 25,336. However, the RSI divergence calls for a cautious approach. The trend reversal point at 24,070 is critical, with support levels for the week at 24,681, 24,550, and 24,464. Traders should stay vigilant and manage their positions accordingly, watching for any signs of a shift in trend.

Nifty Midcap Select Index Analysis
 

The Nifty Midcap Select Index has once again hit a fresh lifetime high, reinforcing the bullish trend on the charts. The next resistance levels are anticipated at 12,780 and 13,036. Despite this upward momentum, it is important to note that technical indicators are showing overbought conditions along with a negative divergence. This suggests that while the index is achieving new highs, there might be underlying weaknesses that could lead to a potential correction.

For this week, the support levels are identified at 12,536, 12,480, and 12,345. These levels should act as potential cushions in case of any pullbacks. Given the overbought status of the technical indicators, a Systematic Withdrawal Plan (SWP) would be the best approach for this index and its constituents in the near and short term.

Investors and traders should be cautious and consider booking profits at current levels or on further rises. The presence of negative divergence in the technical indicators suggests that the current rally might be losing steam, and a correction could be on the horizon. Therefore, it is prudent to lock in gains and wait for better opportunities to re-enter at lower levels.

In summary, the Nifty Midcap Select Index is on a bullish trajectory with resistance levels at 12,780 and 13,036. However, overbought conditions and negative divergence signal potential caution. Support levels for the week are at 12,536, 12,480, and 12,345. A cautious approach with an SWP strategy is recommended, focusing on booking profits and preparing for possible corrections.