Nifty Auto to consolidate in near-term; Nifty IT may correct, show charts

The recommended strategy in Nifty Auto index is to initiate sell positions at the prevailing market price or during upward movements

Analyzing Nifty IT Index

The Nifty IT Index, currently trading at 33,493.90, presents an interesting scenario for traders, especially when leveraging Pivot Levels for a nuanced trading strategy. The short-term trend for the Nifty IT Index is undeniably bullish, as indicated by the recent market movements. However, it's noteworthy that the index has already touched the R1 (Resistance 1) level, encountering stiff resistance. 

This has subsequently led to a correction in the index. The recommendation is to sell on upward movements, contingent on the strict adherence to a stop loss, which is set at this week's high. 

This cautious approach aligns with the understanding that the index has potentially reached a resistance zone and might undergo a corrective phase. The identified target levels for this selling strategy are the Pivot Level, positioned at 33,050, and the S1 Level (Support 1), located at 32,620.

Navigating Nifty Auto Index

The Nifty Auto Index, currently trading at 17,726.50, is displaying signs of consolidation following a notable rally, suggesting a potential distribution pattern. To effectively navigate this market phase, the recommended strategy is to initiate sell positions at the prevailing market price or during upward movements. 

This aligns with expectations of an impending corrective move, with identified target levels set at 17,530, 172,96, and 16,980, serving as potential support zones. Traders are advised to exercise caution, implementing a strict stop-loss mechanism in response to the observed distribution pattern. 

It is essential to note the presence of a resistance zone between 18,164 and 18,200, signifying a critical level to monitor. 

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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.