Nifty Auto, Nifty Energy: See resistance, support levels for trading action

Nifty Auto: There is a preference for finding opportunities to go short below 20,300, considering the bearish trend observed in the near term on the charts

Nifty Auto Index

The Nifty Auto Index, which last closed at 20,406, is encountering significant resistance levels on the charts, anticipated between 20,525 and 20,575. A close above this range would likely trigger a bullish breakout, with the next target resistance projected at 20,825.

Conversely, for the index to turn bearish, it would need to trade below 20,300, which can be regarded as a strict stop-loss level for all bullish positions.

Below 20300, the next support levels on the charts are expected at 19,875 and 19,575. The recommended trading strategy would be to await any potential breakout.

There is a preference for finding opportunities to go short below 20,300, considering the bearish trend observed in the near term on the charts. For intraday trading, it is advisable to adhere to the following support and resistance levels:

 

Support Levels: 20,300 / 20,210 / 20,050

Resistance Levels: 20,500 / 20,600 / 20,775

Traders are advised to closely monitor the price action and consider the identified support and resistance levels before making any trading decisions. This approach allows for a more informed and strategic trading approach based on the prevailing market conditions.

Nifty Energy Index

The Nifty Energy Index, which last closed at 37,631, is exhibiting a range-bound pattern on charts, with boundaries set at 37,950 on the upside and 37,050 on the downside.

A trade above or below these levels would serve as triggers for potential directional movements in the index. If the index breaches the upper boundary of 37,950, the next resistance levels on charts are anticipated at 38,300 and 38,575.

Conversely, if it falls below the lower boundary of 37,050, the next support levels on charts are expected at 36,600 and 35,625.

The recommended trading strategy would be to wait for a breakout and then trade accordingly, based on the direction of the breakout. This approach allows traders to capitalize on potential momentum and directional movements in the index.

For intraday trading, traders may consider the following support and resistance levels:

Support Levels: 37,464 / 37,300 / 37,010

Resistance Levels: 37,800 / 37,964 / 38,250

Traders are advised to closely monitor the price action and consider the identified support and resistance levels before making any trading decisions.

This approach enables traders to make informed decisions and effectively manage their trades in the Nifty Energy Index.

Disclaimer: Ravi Nathani is an independent technical analyst. 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.