Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early. Unlock Stocks
Nifty 50 Sees Sharp Profit Booking from ATH, Time to Go Short?
Author
Published Apr 30, 2024 06:04
© Reuters.
The start of the day was quite good with the benchmark Nifty 50 index not just trading in the green zone but also making a new all-time high of 22,783.35. However, the record high was made with a marginal difference of around 7 points, from the previous high of 22,775.7.
Although a new high is always a bullish signal, this less of a difference coupled with a sharp profit booking which dragged the index by around 210 points from the high is creating some hindrance for bulls.
As of 3:23 PM IST, the index is trading 70 points down to 22,571 and reversing from the all-time high is definitely not a good sign. Now what should traders do?
Firstly, the broader trend is bullish because of a new all-time high today but it lacks strong momentum. But long positions should not be initiated here and waiting for a dip to around the nearest support of 22,300 might be a good option. If this low is breached, then the very strong support zone of 21,700 - 21,800 could be there on the screen in the subsequent days. Both these support zones can be used as a buying opportunity.
Coming to the short side, if you look closely, the index is also forming a double-top pattern on the daily time frame as both the peaks of this M-shaped pattern are around the same levels. This is a bearish reversal pattern and has the same support as mentioned above (the strong one).
Ideally, traders should wait for the pattern to complete which is done after the support is broken but those looking for a pre-mature short entry can try to initiate some hedged bearish strategies. These positions can be covered at the same support levels where bulls can try for long positions.
You can get InvestingPro at a steep discount of up to 69%, for INR 216/month, for a very limited time. Investors are already taking advantage of such a mouth-watering price to ramp up their investing game. In case you are finally ready to up your investing journey, Click here before time runs out.
X (formerly, Twitter) - Aayush Khanna
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.