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Nifty Recovers from Lower Levels: Buy the Dips, Sell the Rises Strategy Continues

24 June 20243 mins read by Angel One
Although there wasn't significant movement afterward, the Nifty ended near the day's high, recovering about 190 points from the day’s low of 23,350.
Nifty Recovers from Lower Levels: Buy the Dips, Sell the Rises Strategy Continues
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Nifty’s Surprising Start to the Trading Week

The trading week began with an unexpected twist as the market opened below last week’s low of 23,398. Initially, it appeared that the market might decline further. However, the bulls, mindful of the primary uptrend, took control and pushed prices higher, effectively erasing the morning’s losses. Although there wasn’t significant movement afterward, the Nifty ended near the day’s high, recovering about 190 points from the day’s low of 23,350, and settled with marginal gains of 0.16% at 23,538.

Market Stagnation: Navigating the Range-Bound Nifty

Index traders are feeling the monotony as prices stay stuck in a narrow range with little momentum. The daily chart shows this stagnation clearly, with small candles clustered tightly together. Traders seem to be waiting for a significant move, so it’s wise to avoid making aggressive bets on the index. Instead, the current strategy should be to buy during dips and sell at higher levels to capitalize on the range-bound movement.

Formation of a Bullish Candle: A Mixed Signal

On Monday, a reasonable bullish candle formed on the daily chart near the support level of 23,350. This bullish candle closed beside the long bearish candle from Friday. However, the formation of this bullish candlestick pattern within a broader range-bound movement suggests that its predictive value might be limited.

Short-Term Trend: Positive Amidst Range Movement

The short-term trend of the Nifty remains positive amidst the range movement. After bouncing back from near the lower range of 23,300 levels, there is a possibility of the Nifty testing the upper range of 23,630-23,680 in the short term.

Key Support and Resistance Levels

Key support is around Monday’s low of 23,350, followed by 23,300. On the upside, stiff resistance lies in the 23,630-23,680 range.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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