Should you sell Nifty Auto, IT on rise? Here's what analysts recommend

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Nifty IT Index: Sell on Rise Near Resistance Levels

The Nifty IT Index is currently trading close to its key resistance level, making it a prime candidate for a "sell on rise" strategy for near-term traders. The resistance level to watch is 43,200, and a strict stoploss should be maintained at this level on a closing basis. If the index fails to breach this resistance, a downward movement is expected, providing selling opportunities for traders looking to capitalize on the near-term weakness.

On the downside, support is expected at 42,500, 42,365, and 42,200. If the index breaks below these levels, further downside could take it into the oversold zone, which lies between 41,950 and 41,800.

At these levels, buyers may step in, potentially providing a rebound, but until then, sell on rise remains the best trading strategy. The technical indicators point to a weakening trend, and traders should focus on shorting the index at resistance levels for near-term profits.

Nifty Auto Index: Negative Bias, Sell on Rise Strategy

The Nifty Auto Index is currently trading with a negative bias, indicating that selling pressure is likely to continue in the near term. The best strategy for traders would be to adopt a sell on rise approach, with a stoploss set at 26,850 on a closing basis.

The index appears to be underperforming, and further downside movement is expected, especially given the weak technical indicators. Key support levels on the chart are 25,500, 25,050, and 24,800.

These levels are critical for traders to monitor, as a break below could lead to further underperformance. The overall trend in the near and short term is bearish, making the "sell on rise" strategy particularly effective for traders and swing traders. Until the index shows signs of stabilizing, focusing on shorting opportunities will yield better returns than attempting to go long.

Conclusion

Both the Nifty IT Index and Nifty Auto Index are showing bearish tendencies in the near term, making sell on rise the best trading strategy.

For the Nifty IT Index, resistance at 43,200 is key, with support levels at 42,500, 42,365, and 42,200. In the Nifty Auto Index, the stoploss is set at 26,850, with critical support levels at 25,500, 25,050, and 24,800. Traders should focus on shorting opportunities in both indices, as technical indicators suggest continued underperformance in the near term.

(Disclaimer: Ravi Nathani is an independent technical analyst. Views are his own. 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.)