The Nifty50 index (last close: 19,517) continues to reflect bullish trend on the short-term charts, with current pullback seen as a healthy correction in the near term. This presents an opportune moment for investors to seek out favorable entry points during market dips.
As per chart analysis, a robust support zone is seen between 18,900 and 18,825 levels. It is worth noting that a significant downward correction is only likely to be activated if the index breaches and subsequently closes below the 19,300-mark.
For near-term positions, traders are advised to set a strict stop loss at 19,300, with a close below this level possibly leading to support at 19,000 – 18,825. Until the breach of 19,300, the index is projected to encounter resistance at around 19,650 – 19,725 – 19,850, reinforcing significance of this range.
For an indication of a fresh bullish momentum, a breakout is anticipated when the Nifty50 conclusively closes above 19,910. Subsequently, potential targets could extend to 20,175 and 20,400.
In summary, the current strategy for the near-term is to sell below 19,300 and buy above 19,900, while embracing a range-bound trading approach where traders capitalise on buying near support and selling near resistance levels, pending a definitive breakout on the charts.
Chart analysis points to a potential support range lying between 44,100 and 43,975, while a robust support level is envisaged around 43,700. Despite the near-term downtrend, the short-term chart indicates a bullish undertone.
Consequently, strategic investors are advised to consider accumulating positions within the range of 43,975 – 43,700, capitalising on potential buying opportunities.
On the higher side, the index is projected to encounter resistance in the near term, particularly in the range of 45,300 – 45,500.
Market participants, therefore, are recommended to closely monitor evolving scenario and remain vigilant to key support and resistance levels in order to carefully assess trading decisions based on identified trends.
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.