Here's why Ravi Nathani is bullish on Nifty 50 index in the near-term

Traders must adopt a bullish stance on the market as the Nifty 50 index closed above 17,870, indicating that bulls are likely to be stronger than bears in the near-term, says Ravi Nathani

Nifty 50
Last close: 17,871.70 (Bullish)

It is recommended that traders adopt a bullish stance on the market as the Nifty 50 index closed above 17,870, indicating that bulls are likely to be stronger than bears in the near-term. This positive breakout was supported by technical indicators such as a positive MACD and upward-trending RSI, as well as favorable pivot levels. The best trading strategy in this scenario would be to buy on dips, with a strict stop loss of 17,475 on a closing basis, and a minimum target of 18,100, followed by 18,200 and 18,400.

Nifty Realty
Last close: 411.65 (Bullish)

It is noteworthy to mention that, as the Index formed a trading range and exhibited positive technical indicators such as MACD and RSI, it is anticipated that a technical bounce could be imminent in the near term. Hence, it would be advisable for traders and investors to adopt a buying strategy on dips, with the objective of acquiring the index and its constituents at more favorable prices. The key resistance level to keep in mind is around 412 and it is recommended to maintain a stop loss of around 405 for any long positions taken.

Nifty Pharma
Last close: 12,357.30 (Bullish)

The Nifty Pharma index index is currently in a favorable position, as it has been performing well in line with the previous article's expectations of a stage of accumulation. The index is expected to experience a technical bounce, with the first resistance level located at 12,715, followed by 12,900. Therefore, it is recommended that traders and investors actively seek opportunities to purchase this index and its constituents, either at the current market price or during price corrections.

Nifty Media
Last close: 1,863.60 (Bullish)

The Nifty Media index is currently presenting a promising outlook, as technical indicators such as MACD and RSI Divergence suggest that it is poised for a period of outperformance. In light of these observations, it is recommended that traders adopt a bullish stance on this index by purchasing at the current market price, with an expectation for a rapid rally of 5 to 7 per cent in the near term. To mitigate risk, it is advisable for traders to maintain a strict stop-loss of 1,816, established on a closing basis.

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