Nifty Auto, IT indices range-bound on charts; Key levels to watch out for

According to Ravi Nathani, an independent technical analyst, the Nifty IT index is seen oscillating between 37,930 and 36,136 trading range.

Nifty IT Index

The IT sector remains range-bound with levels oscillating between 37,930 and 36,136. A decisive close above or below this range is expected to act as a trigger, providing directional cues.

Traders are advised to adopt a strategy of buying near support levels and selling near resistance until a clear breakout is observed on the charts. This approach leverages the repetitive price movements within the established range, allowing traders to optimize entry and exit points.

The cautious strategy is in line with the wait-and-watch stance until a decisive move occurs, providing a more informed basis for strategic decision-making.

Nifty Auto Index

Similarly, the Nifty Auto Index demonstrates range-bound behavior, fluctuating between 18,866 and 18,175. Traders are encouraged to buy near the lower support levels and sell near resistance until a definitive breakout is witnessed.

This strategy aligns with the market's repetitive movements within the established range. Understanding the dynamics of range-bound markets is crucial for traders seeking to navigate these indices effectively.

Patience and disciplined adherence to the buy near support, sell near resistance strategy can yield favorable outcomes in the absence of a clear breakout.

Traders must stay vigilant for potential triggers that could mark a shift in market sentiment and prompt a breakout from the established ranges.

In conclusion, the Nifty IT and Auto Indices present intriguing range-bound scenarios, offering traders the opportunity to strategically position themselves within the defined price ranges.

A cautious and patient approach, coupled with a keen eye for potential breakout triggers, will be instrumental for traders seeking to navigate and capitalize on the dynamics of these indices.

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