Trading strategies for Nifty Auto, Realty indices

While the Nifty Realty index is expected to pullback in the near-term, the Nifty Auto index seems to be trapped in a consolidation range, says Ravi Nathani, an independent technical analyst.

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Ravi Nathani Mumbai

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Nifty Realty Index

The Nifty Realty Index is currently trading at a CMP (Current Market Price) of 514.15. In the near term, a pullback is anticipated, indicating that the index is expected to underperform.

Support levels on the charts are expected around 503 and 481. These levels may serve as potential buying zones for traders. It is advisable to consider buying the index near these support levels, taking advantage of potential price reversals or bounces.

On the other hand, resistance levels on the charts are located at 530 and 540. If the index rallies and reaches these levels, it would be an opportune time to book profits and consider selling. These resistance levels may act as barriers, limiting further upside potential in the near term.

By implementing this trading strategy, traders can aim to capitalize on potential price movements within the range defined by the support and resistance levels.

Nifty Auto Index

The Nifty Auto Index is currently trading at a CMP (Current Market Price) of 14,777.70. The index is currently experiencing a time-wise correction, with its price movement being confined within a narrow range of 400 points.

The consolidation range for the index is identified as 15,000 to 14,600. A close above or below this range would act as a trigger for the next directional move. It is important to closely monitor the price action and observe whether the index can break out of this consolidation phase.

On the downside, support levels are anticipated around 14,000, followed by 13,900. In a worst-case scenario, the index may find support near 13,500. These levels can potentially act as cushions, limiting the downside movement of the index.

Considering the current chart pattern and consolidation phase, the best trading strategy would be to wait for a breakout of the range. Once the index breaks out and establishes a clear direction, traders can adjust their trades accordingly. It is advisable to wait for confirmation and trade in the direction of the breakout, as it provides a stronger indication of the market sentiment.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).

First Published: Jun 22 2023 | 07:13 AM IST

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