Analyzing Nifty IT Index
The Nifty IT Index, currently trading at 33,493.90, presents an interesting scenario for traders, especially when leveraging Pivot Levels for a nuanced trading strategy. The short-term trend for the Nifty IT Index is undeniably bullish, as indicated by the recent market movements. However, it’s noteworthy that the index has already touched the R1 (Resistance 1) level, encountering stiff resistance.
This has subsequently led to a correction in the index. The recommendation is to sell on upward movements, contingent on the strict adherence to a stop loss, which is set at this week’s high.
ALSO READ: Stocks to Watch: Wipro, Laurus Labs, Axis Bank, SRF, KIOCL, CGDs, BoB
Navigating Nifty Auto Index
The Nifty Auto Index, currently trading at 17,726.50, is displaying signs of consolidation following a notable rally, suggesting a potential distribution pattern. To effectively navigate this market phase, the recommended strategy is to initiate sell positions at the prevailing market price or during upward movements.
This aligns with expectations of an impending corrective move, with identified target levels set at 17,530, 172,96, and 16,980, serving as potential support zones. Traders are advised to exercise caution, implementing a strict stop-loss mechanism in response to the observed distribution pattern.
=========================
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.