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It would be prudent for traders to adopt a “buy on dips” approach in their trading strategy, as recent trends suggest a resurgence in the index from a state of oversold conditions.Furthermore, it has been observed that the index is expected to outperform, with a target range of 8,564-8,660, owing to upward trajectory of Bollinger bands and inclination of the MACD trend towards positive territory.In light of this analysis, it is recommended traders implement a “buy on dips” strategy for the Nifty Midcap 50 Index, coupled with a strict stop loss mechanism of 8,225 on a closing basis.
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This, therefore, will ensure traders could maximise their potential returns, while also mitigating risks associated with market fluctuations.
In essence, the current market trends and technical indicators suggest a favorable outlook for the Nifty Midcap 50 Index. As such, traders are advised to proceed with caution and implement a well-informed trading strategy that takes into account the various risks and opportunities presented by the market.
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