Credit Source
On the charts, the trend for the Nifty Auto Index is upward. However, it is important to note that the index is trading in the overbought zone. This suggests that caution should be exercised as the market may be due for a correction. In terms of resistance levels on the charts, the Pivot level R2 is identified at 15,055. This level is expected to act as a stiff resistance for the current month.Considering the overbought condition, it would be prudent for investors to book profits on any rise in the index. For traders, selling pressure can be expected only if the index trades below the R1 level of pivots, which is at 14,626. On the other hand, the pivot level itself, which is at 13,890, is expected to provide support.
Also Read : Bankers await signs on RBI’s liquidity approach amid persisting disconnect
In summary, the Nifty Auto Index is displaying an upward trend on the charts. However, caution is advised as the index is trading in the overbought zone. Investors are recommended to book profits on any rise. Traders should closely monitor the R1 level at 14,626 for potential selling pressure, while keeping an eye on the pivot level at 13,890 for support.
Add A Comment