NIFTY SPOT OVER VIEW 5-2-2025

 

Trend Analysis:

1. Overall Trend: The Nifty 50 index is currently in an uptrend, as indicated by the rising channel (purple lines) and higher highs and higher lows.
2. Short-Term Trend: The price is moving in a smaller ascending channel (blue lines) within the larger uptrend. However, it is near the upper resistance level, indicating a potential pullback.
3. Long-Term Trend: The broader trend remains bullish as long as the price stays above the lower trendline of the larger channel.

Key Levels:

• Resistance: 23,760 - 23,800 (Upper boundary of the rising channel)
• Support: 23,680 (Lower boundary of the small ascending channel) and 23,560 (Stronger support)

Target & Stop-Loss:

• Target (Upside): If the price breaks above the 23,760 resistance, the next target could be 23,800 or higher.
• Stop-Loss: If the price falls below 23,680, it could signal a breakdown from the short-term channel, with a further decline toward 23,560.

Technical Indicators:

• RSI (Relative Strength Index): The RSI is near the overbought zone (above 68), suggesting a possible pullback.
• Volume Spike: A sharp increase in volume at the end may indicate profit booking or a trend reversal.

Trading Strategy:

• Bullish View: Long positions can be considered if the price sustains above 23,750, targeting 23,800+.
• Bearish View: If the price breaks below 23,680, a short position can be considered with a target of 23,560.