Is it wise to book profits in Nifty50, MidCap Select? What analysts say | Mutual Fund – Top Stories
Is it wise to book profits in Nifty50, MidCap Select? What analysts say | Mutual Fund – Top Stories
NIFTY 50 INDEX Analysis:
The NIFTY 50 Index is currently trading at 24,010.60. A sharp rally in the near term has pushed the index into an overbought zone, as indicated by technical indicators like RSI, MACD, and Stochastic. This suggests that profit booking is likely, and a pullback on the charts can be expected in the coming days.
Support levels are anticipated around 23,550, 23,225, and 22,975. The best trading strategy would be to book profits at the current market price and wait for the expected correction to occur. Once the index reaches the support levels mentioned, it would be prudent to start fresh positions.
In summary, the overbought conditions indicated by various technical indicators suggest that a pullback is imminent. Traders should book profits now and look to re-enter around the support levels of 23,550, 23,225, and 22,975. This approach allows for capitalizing on the expected correction while positioning for a potential rebound in the index. Stay watchful and ready to act as the market dynamics unfold.
NIFTY MIDCAP SELECT Analysis:
The NIFTY MIDCAP SELECT Index is currently trading at 12,250.80. In the near term, the index has been consolidating within a range of 12,400 to 12,000 since last week. A close above or below this range would likely trigger a directional move.
Given the current market conditions, it would be prudent to consider short selling or booking profits at the current market price. The index is expected to cool off from the recent sharp rally. Support levels on the charts are anticipated at 11,900, 11,650, 11,400, and 11,200.
Technical indicators are signaling weakness on daily charts, suggesting that the best trading strategy would be to wait for these support levels before accumulating the index and its constituents.
In summary, the NIFTY MIDCAP SELECT Index is showing signs of potential cooling off after a sharp rally. The advisable strategy is to short sell or book profits at the current market price and wait for the index to reach the support levels of 11,900, 11,650, 11,400, and 11,200.
(Disclaimer: Ravi Nathani is an independent technical analyst. Views are his own. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. It should not be construed as a recommendation to purchase or sell such securities.)
First Published: Jul 01 2024 | 6:17 AM IST
