INSUBCONTINENT EXCLUSIVE:
Stock Market, BSE, Nifty, Capital(Photo: Shutterstock)3 min read Last Updated : Sep 23 2024 | 6:34 AM ISTNifty 50 Index: Bullish Trend with
Overbought Signals
The Nifty 50 Index is currently showing a bullish trend on the charts, with the next resistance level at 26,000
Despite the positive outlook, technical indicators reveal that the index has entered an overbought zone
profits at higher levels and avoid fresh bullish positions until a pullback occurs
The key support levels to watch on the downside are 25,300, 25,100, and 24,800
These levels are expected to provide buying opportunities for traders looking to enter fresh bullish positions after the profit booking
opportunities to ride the next wave of bullish momentum.Nifty MidCap Select Index: Failed Breakout and Sell-on-Rise Strategy
The Nifty
MidCap Select Index gave a bullish breakout last week from its near-term range-bound movement, signalling positive momentum
However, the breakout quickly turned into a whipsaw, as the bullish move was not supported by technical indicators, which were already
positioned in the overbought zone
This lack of technical confirmation caused the index to correct post-breakout, making it more volatile for traders
firstly, it would hit stop-losses for all bullish positions, and secondly, it would initiate a negative breakdown, potentially leading to
If such a breakdown occurs, the next major support levels are at 12,650, 12,450, and 12,350
indicators remaining overbought, traders should aim to sell into rallies, with a strict stop-loss set at 13,300 on a closing basis
Nifty 50 Index remains bullish but overbought, indicating a possible near-term correction or profit booking
the other hand, the Nifty MidCap Select Index has shown signs of weakness after a failed breakout, with a sell-on-rise strategy being the
A strict stop-loss at 13,300 should be maintained, and traders should be cautious of a potential breakdown below 12,980.(Disclaimer: Ravi
Nathani is an independent technical analyst
He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any
It should not be construed as a recommendation to purchase or sell such securities.)First Published: Sep 23 2024 | 6:26 AMIST
