 |
|
The article provides insights into the current market outlook for two prominent indices in the Indian stock market: the Nifty 50 Index and the Nifty Midcap Select Index. Both indices are showing bullish signals, suggesting potential for further gains in the near term. The analyst recommends specific strategies for traders looking to capitalize on this positive momentum.
Regarding the Nifty 50 Index, the article highlights a bullish trend displayed on the charts. The key resistance levels to watch are 24,900, 25,010, and 25,265. If the index breaks above 24,800, it could add momentum to the bullish trend. For traders, the recommended strategy is to buy on dips, taking advantage of temporary pullbacks to enter the market. However, it is crucial to manage risk effectively by setting a strict stop-loss at 24,225 on a closing basis. This ensures that potential losses can be minimized if the market unexpectedly reverses.
The Nifty Midcap Select Index, on the other hand, has recently broken out of a consolidation phase, indicating a bullish outlook. The analyst suggests that buying on dips should be the preferred strategy for traders to capitalize on the index's upward momentum. The expected resistance levels for this week are set at 12,825, 12,910, 13,000, and 13,200. If the index surpasses 13,200, it would enter an overbought zone for the near term. In such a scenario, traders are advised to be cautious, consider halting further buying, or even booking profits on bullish positions above this level. The overbought condition might lead to a temporary pause in the upward trend or even a correction.
To mitigate downside risk, a strict stop-loss below 12,480 on a closing basis is recommended. This ensures that losses are minimized if the market unexpectedly reverses. This stop-loss is particularly crucial due to the potential volatility after a breakout. Overall, the article provides a comprehensive analysis of the current market conditions and suggests actionable strategies for traders looking to navigate the stock market effectively.
Source: Will bulls stage comeback on D-Street? Here's what analysts suggest