INSUBCONTINENT EXCLUSIVE:
Stock Market, BSE, Nifty, Capital(Photo: Shutterstock)2 min read Last Updated : Sep 26 2024 | 6:26 AM ISTNifty IT Index: Bearish Trend with
Selling Pressure
The Nifty IT Index is currently exhibiting a bearish trend in the near term
A close below 41,600 would trigger additional selling pressure, pushing the index towards its key support levels at 40,750, 38,925, and
Given this outlook, the best trading strategy would be to adopt a "sell on rise" approach
Traders should look for opportunities to short the index during any upward moves, while maintaining a strict stop-loss at 43,590 on a
closing basis to minimise risk
This bearish sentiment is expected to dominate unless a significant technical reversal occurs, but the current chart setup suggests that
appears overbought on the near-term charts, indicating a potential pullback in the coming sessions, likely after the monthly expiry
This overbought condition increases the chances of selling pressure, with support expected at 26,500, 26,100, and 25,786 on the charts
The recommended strategy for traders is to sell into rallies and book profits, taking advantage of the expected correction
Given the current market conditions, selling on the rise allows traders to capitalise on the overbought nature of the index
However, it is essential to monitor key support levels for any potential buying opportunities once the index corrects to more favourable
levels.Conclusion
Both the Nifty IT and Nifty Auto indices are showing signs of weakness, with the Nifty IT Index trending bearish and the
Nifty Auto Index overbought and poised for a dip
In both cases, a sell-on-rise strategy is recommended
For the Nifty IT Index, watch for a break below 41,600 to initiate short positions, while for the Nifty Auto Index, traders should look to
sell into rallies, especially post-expiry
Traders should ensure they use appropriate stop-loss levels to manage risk, with 43,590 being critical for Nifty IT and close monitoring of
support levels for Nifty Auto.(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 26 2024 | 6:11 AMIST
