This is evident from the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic indicators. In light of this analysis, the optimal trading strategy for traders and investors would be to sell on the rise, with a stop-loss at 43,750, and a target expected around 41,800 – 41,750.
Also Read : Coal India down 3% as Q4 net drops on higher wages; analysts remain divided
Once the index breaks this range on a closing basis, the target is expected to be around 40,600 – 40,525. While the short-term trend is bullish, traders and investors must exercise caution and manage their risks to avoid undue losses.
In conclusion, the index’s current market price, along with identified short-term bullish trend, presents an opportunity for traders and investors to potentially generate positive returns.
However, it is crucial to approach the market with a well-informed and strategic plan, backed by diligent risk management practices, to optimise investment opportunities and mitigate potential risks.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).