For traders and investors, the best strategy would be to buy on dips with a target of 42,000 and 43,000. The index, therefore, is expected to maintain the bullish phase in the short and medium term, so investors are encouraged to accumulate the index on every correction.
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The next resistance level is anticipated to be around 40,800 and 41,600, which is 100 EMA levels and the upper Bollinger Band since the index is currently trading above the middle Bollinger band, which is 20 SMA.
In conclusion, this report recommends investors to adopt ‘buy-on-dips’ trading strategy, given bullish phase likely in short and medium term.
The technical indicators support this outlook, and the target resistance levels are predicted to be around 42,000 and 43,000.
Investors are advised to accumulate the index on every correction, with a strict stop loss placed below 38,800.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).