Nifty Realty Index as seen on the daily technical charts, which reveal important price levels and trends in the market. The current market price (CMP) of the index is 393.75, and it is trading in a narrow range between 389 to 402.
The upper limit of this range is also known as the resistance level, while the lower limit is known as the support level. It is important to note that the index has been unable to overcome the resistance level despite several attempts, indicating that there is a lot of selling pressure in the market at this level.
In technical analysis, a breakout occurs when an asset’s price breaks through an important resistance or support level, indicating a possible change in trend.
In case of Nifty Realty index, a bullish breakout is expected if it closes above the resistance level of 402. If it happens, the index may move towards the expected target range of 412-426.
Conversely, a bearish trend can be expected if the index closes below the support of 389. In this scenario, the next support can be expected around 378-373 levels.
Trading Strategy: Based on technical analysis, traders are advised to adopt a “Buy Low, Sell High” approach to capitalize on the expected price movements. This means buying near the support level and selling near the resistance level. Traders should be cautious and refrain from taking positions until a clear breakout is observed in either direction. Once the breakout is observed, traders can take positions in the direction of the breakout.
Nifty Midcap 50 Index
Bias: Sell on the rise
Last Close: 8,451.70
The Nifty Midcap 50 index is currently trading at the current market price (CMP) of 8,451.70. Based on the technical analysis of the daily charts, it can be seen that the index is range bound between 8,551 to 8,310.
If the index trades and closes above 8,551, a bullish trend is expected at the next resistance levels 8,610-8,680-8,740. Conversely, if the index trades and closes below 8,310, a bearish trend is expected at the next support levels of 8,225-8,065.
Unless the index closes above 8,786, the short-term trend is down. Hence the best trading strategy in the short term would be to look for selling opportunities based on closes with a strict stop-loss of 8,786, while near term traders should monitor the range (8,551-8,310) and follow the trend . After breach in any direction.