Nifty Index Interpretation
As of right now, the Nifty Index is trading at 23,465.60. The index is in the oversold area on short-term charts, indicating that any increase is likely to be met with selling pressure. It is expected that stiff resistance will range from 23,575 to 23,600. If the index closes above this resistance range, it may move towards 23,800. On the other hand, 23,100 is anticipated to provide support for the index.
The optimal trading approach in this situation would be to sell on any gain in price or at the current market price (CMP). 23,100 should be the strategy’s target price. The next level of support would be 22,900 if the index were to break below 23,100.
In conclusion, traders ought to think about shorting the index at CMP or during any higher rise, with the 23,100 support level serving as their main objective. Should the index keep falling, 22,900 ought to be the next objective. The oversold conditions on the charts, which suggest the possibility of further negative momentum in the near future, lend credence to this strategy.
Analysis of the Nifty Mid Select Index
At 12,053.20, the Nifty Mid Select Index is now trading. The index looks overextended on short-term charts, suggesting that selling pressure is probably going to be seen at the present market price (CMP) or on any upswing. The optimal trading approach, given this technical setup, would be to sell the index and its components on any upward advance.
11,750 is the first support level to aim for, while 11,575 is the second support level. This approach is supported by the index’s overbought state, which indicates that a retracement from the recent surge may be warranted. For traders hoping to profit from the predicted downward movement, it would be wise to sell on increase or book profits at the CMP.
In conclusion, traders could think about booking profits at CMP or shorting the index, with primary support at 11,750 and secondary support at 11,575 levels. This strategy is in line with the index’s overextended state and offers a chance to profit from the anticipated correction in the near future.
(Disclaimer: Technical analyst Ravi Nathani works independently. His opinions are his own. This is not an offer or solicitation for the purchase or sale of any securities, and he has no positions in any of the aforementioned Indices. It is not intended to be interpreted as an advice to buy or sell these assets.)