Nifty Media index needs to cross this hurdle to see next leg of rally

The recent rally in the Media index has propelled it closer to the resistance level of 2,300. This resistance level is anticipated to act as a formidable barrier for bullish momentum

IT Index Analysis: Range-bound dynamics

The current market price (CMP) of the Nifty IT Index stands at 31,060.20, portraying a range-bound trend on the charts. The index's movement is confined within the range of 31,400 to 30,550. A close above or below this range is likely to trigger significant directional shifts. Anticipated resistance on the charts is envisaged around 32,800, indicating a potential level where upward movement may encounter challenges. Conversely, support is projected at approximately 30,200 and 28,750, serving as foundational levels that might arrest downward movements.

In light of the index's current positioning and chart analysis, a prudent suggestion would be to consider booking profits. This perspective is based on the anticipation that the index is likely to conclude the month in proximity to last month's closing figures. This projection implies a flat to negative performance in the near term.

Nifty Media Index: Assessing recent rally

The Nifty Media Index is currently positioned at 2,236.90 on the back of the recent rally on the charts. This rally has propelled the index closer to a notable resistance level, which holds substantial significance. This resistance level is anticipated to act as a formidable barrier for bullish momentum in the near future. It's imperative to recognize that until the index effectively breaks and securely closes above the 2,300-mark, the likelihood of fresh buying opportunities in the near term remains limited.

To prudently manage risk, it is recommended to exercise caution and consider taking a strategic step. Setting a stringent stoploss at 2,300 on a closing basis is advised. Looking ahead, potential support on the charts is projected at approximately 2,180 and 2,050 levels. These levels offer reference points where downward movements might be arrested or present tactical opportunities for traders.

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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He doesn't hold any positions in the indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security.