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Buy on dips strategy suggested for Nifty; Check support & other levels here
Source: Business Standard
Nifty 50 Index
The recent correction in the Nifty50 index should be seen as a pullback within an overall bullish trend on short-term charts. The best trading strategy for both traders and investors is to buy on dips, especially around the support levels of 24,710 and 24,550.
These levels represent strong support, and any dips near these points offer good buying opportunities, especially if the range of 24,800 to 25,000 is breached.
On the other hand, if the index breaks and closes above 25,000, it could trigger further bullish momentum. In this scenario, the next resistance levels to watch for are 25,333, 25,550, 25,760, and 25,925.
The overall trend remains bullish, and buying on dips continues to be the most advisable strategy for short-term traders.
In summary, traders should look for buying opportunities around 24,710 and 24,550 support levels, and if the index breaks above 25,000, it could target higher resistance zones, indicating continued upward momentum.
Nifty Midcap Select
The Nifty Midcap Select Index is currently exhibiting a range-bound movement, trading between 13,300 and 12,980. This consolidation phase suggests that the index is lacking a clear directional momentum.
A breakout either above or below this range will likely provide the next significant move in the index. If the index breaks below the lower range of 12,980, it could initiate a bearish trend, and traders should watch for the next key support levels at 12,880, 12,750, and 12,615.
These levels could provide opportunities for buyers to accumulate positions if the overall market sentiment remains bullish. Conversely, if the index breaks above the upper range of 13,300, it could signal renewed bullish momentum, with potential resistance targets at 13,400 and 13,550.
A close above this range would suggest strength in the broader midcap space and could attract fresh buying interest. In terms of strategy, traders are advised to wait for a clear breakout on either side before entering trades.
For risk-averse traders, it’s crucial to avoid initiating positions within this range and instead wait for confirmation of direction. Once a breakout occurs, traders can align their positions based on the direction of the move, whether it’s a breakout or breakdown.
(Disclaimer: Ravi Nathani is an independent technical analyst. Views are his own. 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.)
First Published: Sep 09 2024 | 6:31 AM IST
