The current market price of Nifty Auto index is 12,141.95. Its short-term performance is characterized by significant drops, which has resulted in its current position, hovering around its support levels.
On analyzing the daily chart pattern, it is evident that the support level for this index is anticipated to be in the range of 11,800-12,000. For traders and investors, the ideal trading strategy within this range would be to purchase on dips, as a technical rebound may be expected shortly in the index and its components, with a target price of 12,800.
In conclusion, the analysis suggests that the recent dip in the index is an excellent opportunity for traders and investors to purchase and hold it for a potential profit.
Outlook: Range Bound on charts
Last close: 44,920
Meanwhile, traders are recommended to acquire positions near the support level (44,400) while maintaining a disciplined stop-loss plan and selling near resistance (45,275).
Outlook: Sell on rise
Last close: 5,494