Nifty Realty in 'overbought' zone; Nifty MidCap faces resistance at 13,200

A prudent trading strategy in the Nifty Realty index would involve booking profits, and adopting a cash position

Strategic approach for Nifty Realty Index amidst overbought conditions

The Nifty Realty Index, currently positioned at 772.55, indicates a bullish short-term trend on the charts. However, it is in an overbought zone, hinting at a potential pullback in the near term.

A prudent trading strategy at the current market price (CMP) would involve booking profits, and adopting a cash position. 

Anticipated support on the charts is projected around 680 and 620. This signifies a crucial juncture for traders, as these levels are expected to provide favorable risk-reward ratios. Investors are advised to add fresh bullish positions only when the index nears these identified support levels. 

 

By staying in cash amidst the overbought conditions, traders can position themselves advantageously to capitalize on potential opportunities during the anticipated pullback.

Navigating Nifty Midcap 50 Index trends amidst resistance

The Nifty Midcap 50 Index, currently standing at 13,000.70, exhibits a bullish trend on the charts. However, a closer look reveals an impending challenge in the form of stiff resistance anticipated around the 13,200-mark. A decisive close above this level is deemed crucial, potentially paving the way for further upside targets at 13,664 and 14,400. 

For traders eyeing fresh positions, a cautious stance is recommended, with the optimal entry point considered to be above the 13,200 resistance level. Until this breakout occurs, risk-averse traders might explore short-selling opportunities at the current market price (CMP), implementing a stop-loss strategy at 13,200. 

Alternatively, conservative investors can adopt a systematic investment approach, utilising Systematic Withdrawal Plans (SWP) in the constituents of this index as it approaches the aforementioned resistance levels. 

In the event of a pullback or correction, support levels on the charts are anticipated at 12,500 and 12,200.

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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.