Last close: 42,235.05
Currently, the index is confined within a range-bound chart pattern. This pattern, therefore, is considered to be neutral, suggesting a period of consolidation or in-decision is likely in the near term.
The market is in a state of equilibrium, with buyers and sellers in balance, and the index’s price is likely to remain within the defined range of 42,725 (resistance) to 41,725 (support).
Hence, a clear break from either the support or resistance levels can indicate a trend change. While a break above the resistance level of 42,725 can indicate a bullish trend, a break below the support level of 41.725 can indicate a bearish trend.
Until a breakout is seen on the charts, the best trading strategy for traders would be to buy or sell near the lower or higher range of consolidation. This strategy is known as buying at support, and selling at resistance, where traders could aim to buy near support levels of 41,725, and selling near resistance levels of 42,725.
Though this strategy can be profitable as long as the market remains in the range, traders should be cautious and keep an eye on the charts for a clear breakout.
Intraday No Trade Zone: 42,110 – 42,365
Expected Intraday Resistance Levels: 42,449 – 42,625 – 42,900
Expected Intraday Support Levels: 41,980 – 41,890 – 41,675
Last close: 44,536.10
The index closed with a positive bias, indicating a bullish market sentiment. This suggests buyers are in control and prices of assets tracked by the index are likely to rise in the near term.
The RSI, a momentum indicator, has also edged higher, which is a bullish signal. The MACD indicator is at the edge of changing its trend to bullish, indicating a potential buying opportunity.
Besides, the Ichimoku cloud also indicates that the index is expected to gain momentum. Using all technical indicators, the best strategy for near-term traders would be to buy on correction.
The traders can target in the range of 45,310 to 45,750 levels.
Intraday No Trade Zone: 44,400 – 44,680
Expected Intraday Resistance Levels: 44,749 – 44,925 – 45,280
Expected Intraday Support Levels: 44,310 – 44,180 – 43,925
(Ravi Nathani is an independent technical analyst. Views expressed are personal).