Tech View: Nifty forms green candle, buy-on-dips favoured above 22,725 How to trade on Thursday Given broader market strength, a buy-on-dips strategy remains favourable if Nifty holds its recent low of 22,725. The 21-Day Simple Moving Average at 23,230 is a key hurdle, and a breakout above this.
Tech View: Nifty Forms Green Candle, Buy-on-Dips Favoured Above 22,725
In the ever-evolving landscape of Indian stock markets, the Nifty index has recently demonstrated resilience by forming a green candle, indicating bullish sentiment. As we approach Thursday’s trading session, market participants are advised to adopt a buy-on-dips strategy, provided the Nifty maintains its recent low of 22,725.
Understanding Market Dynamics
The broader market strength suggests that investors should remain optimistic. The key support level at 22,725 is crucial; if the Nifty holds above this mark, it opens up opportunities for strategic buying. Traders can look for dips as potential entry points, capitalizing on any short-term fluctuations while keeping an eye on overall market trends.
Key Resistance Levels
On the technical front, the 21-Day Simple Moving Average (SMA) stands at 23,230, presenting a significant hurdle for the Nifty. A breakout above this level could signal further upward momentum, enticing bullish traders to enter the market. This could potentially lead to increased buying activity, driving prices higher.
Trading Strategy for Thursday
For Thursday, the focus should be on monitoring key levels closely. If the Nifty dips towards the support level of 22,725, consider accumulating positions. Conversely, if the index breaches the 21-Day SMA at 23,230, it may be wise to increase exposure to capture the upward trend. Always remain vigilant and adjust your strategies based on market movements.
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Conclusion
In conclusion, the current market scenario presents a favorable backdrop for a buy-on-dips approach above 22,725. Keeping an eye on resistance levels and utilizing resources like Looffers.com can provide added advantages to traders looking to optimize their investments.
