Look to sell Nifty IT on rise; Auto index may consolidate

According to Ravi Nathani, an independent technical analyst, the 32,649 level is anticipated to act as a stiff resistance for the Nifty IT index.

Nifty IT Index Analysis Cautious approach sell on rise

The current market price for the Nifty IT Index stands at 32,325.70, and the prevailing bias is negative, indicating a scenario of profit booking on upward movements. 

Anticipated stiff resistance on charts is around 32,649. Only if the index successfully closes above this level will the near-term trend shift to positive. Until such a positive reversal materializes, the recommended trading strategy for traders is to sell at the current market price or during upward movements. Implementing a strict stop loss is crucial, triggered once the index closes above 32,649. 

The identified target or support levels on charts are situated at 31,616, 31,316, and 31,016.

In summary, the Nifty IT Index presents a cautious outlook, emphasizing profit booking on rises. Traders are advised to closely monitor the resistance levels and align their strategies with the prevailing negative bias until a clear positive trend reversal is observed. This strategic approach allows traders to navigate the market prudently and make informed decisions based on the existing market conditions.

Nifty Auto Index Analysis Cautious, Consolidation with Bias Negative

The Nifty Auto Index's current market price stands at 16,860.10, and the prevailing market conditions suggest a narrow consolidation with a negative bias. This consolidation is confined within the range of 16,951 to 16,730. A decisive close either above or below this range will act as a trigger, providing insight into the potential direction of the market. 

In the current scenario, the recommended trading strategy for near-term traders is one of caution, advising them to await a breakout, which is expected to occur on the lower side. The charts indicate anticipated support levels around 16,380 and 16,250. 

Until a clear breakout transpires, the prudent approach for risk-tolerant traders is to consider selling at the current market price or during upward movements. 

In summary, the Nifty Auto Index is currently in a phase of consolidation marked by a negative bias. Traders are urged to exercise patience, waiting for a definitive breakout. This strategic approach enables them to navigate the market effectively, making well-informed trading decisions based on the confirmed trend direction.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).