Traders can adopt 'buy-on-dips' strategy for Nifty Media: Ravi Nathani

Nifty Pharma

Recently, the index reached its resistance level, which indicated that a small correction is likely to take place in the near future.

Technical traders are advised to adopt a sell-on-rise strategy in the near term, with a stop loss of 11,850. This strategy, therefore, is expected to yield best results, with a target expected at 11,600.

The rationale behind this approach is that the index is likely to experience a downward trend, with bearish momentum prevailing in the market, whereas, it is expected to trade sideways in the short-term within a range of 11,900-11,500.

Swing traders, meanwhile, are advised to adopt a buy-near-support and sell-near-resistance strategy until a clear breakout is observed on the charts. This strategy is expected to yield profitable results, as the market is likely to experience a range-bound pattern, with fluctuations occurring within the prescribed range.

Intraday No Trade zone: 11,800 – 11,764

Intraday Resistance: 11,805 – 11,836 – 11,881

Intraday Support: 11,745 – 11,720 – 11,650

Nifty Media

Charts suggest that the index is displaying a range-bound pattern, with fluctuations occurring within a prescribed range of 1,777-1,650. Any close above or below this range is likely to trigger a directional momentum in the market, indicating a potential shift in the prevailing trend.

This range-bound pattern is expected to persist in the short term, with the index consolidating its position post a sharp correction in the market.

The best trading strategy for traders in the current market scenario would be to buy on dips, as the index is expected to consolidate post a sharp correction.

In case of a violation on the upper side of the range, the index is expected to head for a bounce, with the minimum target/resistance expected in the rally being around 2,025-2,100.

On the flip side, if the index breaks below the lower limit of the range, the next support on the daily charts is expected around 1,550-1,460.

In conclusion, the Nifty Media Index is currently displaying a range-bound pattern, with fluctuations occurring within a prescribed range. Traders are advised to adopt a buy-on-dips strategy, as the index is expected to consolidate post a sharp correction in the market.

The minimum target/resistance expected in the rally is around 2,025-2,100, while the next support on the daily charts is expected around 1,550-1,460, in case of a violation on the lower side of the range.

Intraday No Trade zone: 1,745 – 1,730

Intraday Resistance: 1,752 – 1,765 – 1,785

Intraday Support: 1,725 – 1,710 – 1,681

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