Positive trend ahead for Nifty IT, bearish on metal index: Ravi Nathani

As per the technical analyst, the best trading strategy for traders would be to buy Nifty IT either at the current market price or at dips, with a target of 31,500

NIFTY METAL

Last close: 6867.30

Outlook: Bearish

The stock market is currently experiencing a mixed performance with the Nifty Metal index trading in a narrow range, which could potentially indicate a breakdown in the near future. Henceforth, investors shall adopt a trading strategy that includes a strict stop loss at the resistance level of 6,970 and selling the index and its constituents at higher levels with a target of 6,500. Despite the index displaying a strong positive growth of 11.5 per cent, it is important for investors to be aware of the potential reversal of this trend, as the metal sector is facing headwinds due to global economic uncertainty.

Levels for intraday

Intraday no trade zone: 6,845 - 6,890

Expected Intraday Resistance levels: 6905 – 6950 – 7010 

Expected Intraday Support levels: 6815 – 6775 – 6700

NIFTY REALTY

Last close: 430.55

Outlook: Range-bound

The real estate sector has been facing challenges in the run up to the Union Budget due to which the index has been trading within a limited range for the past 15 days, which may suggest that a U-shape pattern is forming on the short-term charts. This can be observed by the strong support level at 420 and resistance levels that are expected to be between 436-440. The index is currently trading within the range of 420-440, and a breakout above or below this range could potentially signal a move in a particular direction. Investors should be aware that if the index breaks above 440, the next resistance level is projected at 455, while a break below 420 could indicate potential support levels at 406 and 398. As the Union Budget and interest rate cycles can also impact the real estate sector, investors should consider these factors and keep these levels in mind when making any investment decisions.

Levels for intraday

Intraday no trade zone: 429 - 432

Expected Intraday Resistance levels: 440 – 445 

Expected Intraday Support levels: 425 – 420

NIFTY IT

Last close: 29, 632.35

Outlook: Bullish

The Nifty IT index has displayed a positive bias on weekly charts, indicating a bullish sentiment in the near and short term. A sloping trend line can be observed, formed by connecting the previously highest prices of 30,475 and 31,228, which suggests that the current swing may face resistance around 31,500. Technical indicators such as the Relative Strength Index (RSI) as well as the near and short-term moving averages of 10, 20, 40, 50, and 100, are all indicating a bullish reversal in the near future. Therefore, the best trading strategy for traders and investors would be to buy this index either at the current market price or at dips, with a target of 31,500.

Levels for intraday

Intraday no trade zone: 29,555 - 29,710

Expected Intraday Resistance levels: 29,760 – 29,925 – 30,150 

Expected Intraday Support levels: 29,440 – 29,290 – 28,950

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