[ad_1]
After a straight rally from the lows made on Monday due to a knee-jerk reaction, the Nifth 50 index has crossed its key hurdle of 19,766 on Wednesday. Although I was not expecting this resistance to be breached so easily after the Israel-Hamas war broke out over the weekend, this sheer strength depicts the unscathed investors’ confidence.
The resistance of 19,766 has finally been breached which means the short-term downtrend has ended. However, as the macro environment does not support the bullish environment, the markets are more likely to turn sideways. Also, looking at the price action of today, the index has been sold off from the high of 19,838 to the CMP of 19,787, which is a cut of 50-odd points.
This selling also indicates that investors are not willing to hold their long positions at the upper levels and profit booking will likely come every time the index tries to soar higher. But the demand is also there which propelled the index above the hurdle. This tug-of-war between bulls and bears is the reason I believe will likely trade sideways for the next few sessions.
Now the question is what could be the range? On the lower side, there is a support at 19,480 which is quite important as this was made when the market digested the news of a war situation on Monday. And as the index reversed from this same level, this might act as a strong support if Nifty 50 comes down.
However, there is no further resistance levels present now, all thanks to a one-way fall from the all-time highs in September 2023. So a very precise level is difficult to gauge as of now. But as the trend is expected to remain sideways, a sell-on-rise strategy seems more apt than buying on these higher levels.
Disclosure: I hold multiple positions in Nifty 50 options.
——————————
X (formerly, Twitter) – aayushxkhanna
LinkedIn – Aayush Khanna
[ad_2]
Source link
