Nifty Auto eyes fresh selling below this level; Buy Nifty IT near support

As per Ravi Nathani, traders should wait for the correction to complete and start buying Nifty IT index at or near the support level of 29,800

Nifty Auto Index

The Nifty Auto Index is currently experiencing a downward trend in the near term, as indicated by charts. One must closely monitor a robust support level which is anticipated around 15,800. A breach below this level could potentially trigger a new wave of selling in the market.

Further support levels are projected at 15,715 and 15,475, making it crucial for traders to closely observe the index's movement, particularly at the 15,800 mark.

Conversely, if the index manages to stage a rally and surpasses the 16,080 mark, the next resistance levels on the charts are expected to be at 16,200 and 16,300. This scenario implies that a breakthrough above 16,080 could pave the way for a bullish momentum in the market.

In summary, traders are advised to closely monitor the Nifty Auto Index, with particular attention to the pivotal 15,800 level. This level serves as a key indicator, potentially dictating the market's direction in the coming days. Additionally, keeping an eye on the 16,080 mark is essential, as a rally beyond this point could signify a shift in market sentiment, impacting trading strategies accordingly.

Nifty IT Index: Wait for correction to complete and then buy on dips

The Nifty IT Index is also showing a downtrend in the near term, according to charts. It is expected that a strong support level will emerge around 29,800. The index has undergone a significant correction over the past six weeks and is currently very close to these support levels.

Given the present situation, the recommended trading strategy for this index is to wait for the correction to complete and start buying at or near the support level of 29,800. This approach allows for entry into the market at a favorable position, potentially maximizing gains when the market starts to rebound.

This advice is applicable to both swing traders and long-term investors. Accumulating the index around the 29,800 mark is suggested, with short-term targets set at 31,600 and 32,000.

This strategy enables individuals to position themselves strategically, taking advantage of the anticipated market recovery and potential upward momentum in the near future.

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 security. It should not be construed as a recommendation to purchase or sell such securities.