Trading guide: Here are key Nifty levels to watch today; two ETFs to buy

Nifty View

 

The Nifty’s attempt at a follow-up rally failed, as the index fell 97 points to close at 24487. After an initial rise in the first hour of trade to 24702, the Nifty reversed direction and fell over 200 points from its high, settling near the day’s low. The 24340 level, where recent swing lows were registered, continues to be the support for the Nifty. On the upside, today’s high of 24702 will now act as a short-term resistance level.

 

Buy Nippon India ETF Nifty PSU Bank BeES (₹78) | Target ₹82, 84 | Stop-loss: ₹75

 

Nippon India ETF Price has recently found support at its 200 DEMA followed by positive crossover on 50 DEMA. PSU Bank index has got more relative strength as a sector in the recent down trend of the market. Daily RSI has given positive crossover and reached above benchmark level of 50.

 

Buy ICICI Prudential Nifty India Consumption ETF(CONSUMIETF) (₹121) | Target ₹124.80, 128 | Stop-loss: ₹117

 

Downward sloping trend line breakout on the weekly chart. ICICI Prudential Nifty India Price has been sustaining above 200 DEMA resistance. Price is now placed above 50,100 and 200 days EMA. Daily and weekly RSI has reached above 40, indicating sustainable up trend. Weekly MACD is placed above the signal and equilibrium line.

 

(Disclaimer: Vinay Rajani is a senior technical and derivative analyst at HDFC Securities. Views expressed are his own.)