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Nifty 50 Index
The Nifty 50 Index, currently trading at a CMP (Current Market Price) of 22,493.55, is currently displaying a bullish trend on charts. In the near term, a range-bound scenario is anticipated, with the identified range spanning from 22,580 on the upside to 22,400 on the downside.
A close above or below this range is expected to trigger directional movements. If the upper limit at 22,580 is breached and closed above, it would signal a potential upward movement. In such a scenario, the next resistance levels are identified at 22,660 and 22,800.
Conversely, if the lower limit at 22,400 is violated and closed below, the next support levels on charts are expected at 22,325 and 22,180. The overall trend remains bullish, and a reversal is only expected if the index closes below 22,180. In such a case, a fresh round of selling is anticipated, with support levels identified at 21,775, 21,550, and 21,200 for the month.
Traders and investors are advised to closely monitor these levels for potential market movements.
In summary, the Nifty 50 Index is currently in a bullish trend, and a near-term range-bound scenario is anticipated between 22,580 and 22,400. Traders should keep a watch on these levels for potential breakout or breakdown signals, with a close eye on the overall trend and support/resistance levels for strategic decision-making.
Nifty Midcap 50 Index
The Nifty Midcap 50 Index, currently trading at a CMP (Current Market Price) of 13,948.40, is currently reflecting a near-term downtrend on charts. Support levels are anticipated at 13,550, 13,336, and 13,000.
Conversely, a formidable resistance is expected around 14,150, and a close above this level may lead to further resistance at 14,500. The recommended trading strategy in the current scenario is to sell on rallies, implementing a strict stop-loss at 14,150 on a closing basis.
This approach aims to capitalize on potential downward movements and manage risks effectively. Traders are advised to await support levels for potential repurchase decisions. Overall, technical indicators, including short-term Exponential Moving Averages (EMA), Moving Average Convergence Divergence (MACD), and Relative Strength Index (RSI), are indicating underperformance.
This suggests a propensity for selling pressure on higher levels. For both near and short-term traders, the suggested trading strategy is to book profits at the current market price or during upward movements. Staying in cash is recommended as the market conditions suggest potential selling pressure in the midcap segment.
In summary, the Nifty Midcap 50 Index is currently in a near-term downtrend, and the proposed strategy involves selling on rallies with a strict stop-loss at 14,150. Traders are encouraged to stay vigilant for potential repurchase opportunities at support levels, and overall caution is advised, given the underperformance signaled by technical indicators.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
