Intraday Strategies for Nifty IT and Auto Indices in Current Market Conditions
Nifty IT Index
Last close: 37,775.40
The Nifty IT Index, currently at 37,775.40, presents a challenging scenario with a near-term bearish trend. Stiff resistance is anticipated between 38,000 and 38,125, shaping the overall negative bias.
The recommended trading strategy is to sell on any upward movements, aligning with the prevailing bearish sentiment. For intraday traders, crucial support levels are identified at 37,600 and 37,425, with an oversold condition anticipated around 37,125.
Opportunistic intraday buying is advised at these lower levels, anticipating a pullback.
On the flip side, intraday resistance is expected around 37,950, 38,125, and 38,425. Traders are urged to take note of these intraday levels and tailor their trades accordingly, keeping a negative bias in mind.
Nifty Auto Index
Last close: 19,716
The Nifty Auto Index, standing at 19,716, unfolds with a bullish near-term trend on charts. The next resistance levels are projected around 19,950 and 20,250. However, achieving these levels hinges on the index trading above 19,750 and maintaining this position for a sustained period, preferably 30 minutes.
Intraday traders should be prepared for some selling pressure, given the sharp rally observed in the last trading session. Crucial intraday support levels are identified at 19,575, 19,436, and 19,200. On the other hand, intraday resistance levels are expected around 19,864, 20,000, and 20,250.
In conclusion, the current market conditions for the Nifty IT and Auto Indices call for strategic intraday approaches. For Nifty IT, a cautious sell-on-rise strategy aligns with the bearish near-term trend. Intraday traders are provided with key support and resistance levels to navigate potential pullbacks.
Meanwhile, in the Nifty Auto Index, the bullish near-term trend opens opportunities for intraday buying, contingent on the index maintaining positions above 19,750.
Traders are cautioned about possible selling pressure and are equipped with support and resistance levels for informed intraday decision-making. Adapting to the dynamic conditions and incorporating these intraday strategies positions traders to make prudent decisions in the evolving market landscape.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
First Published: Feb 15 2024 | 6:36 AM IST