Technical indicators, such as the Relative Strength Index (RSI), are displaying a negative trend in the overbought zone. This indicates that the index is likely to experience a downturn soon. It is important to note that this underperformance is expected after the derivative monthly expiry.
Support levels on the charts are anticipated at 13,250 and 12,750. Investors should consider accumulating positions within this range, as it is deemed to be the most favorable point for accumulating positions based on the chart analysis.
Given that the index is currently in the overbought zone, the recommended trading strategy for both traders and investors would be to sell on any upward movements or at the current market price. It is advisable to wait for the index to approach the support levels before considering buying positions.
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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. 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.