Critical Decision: Nifty50 and MidCap Select Surge to Key Resistance – Should You Seize Profits Now?

Nifty 50 Index Update

As of September 2, 2024, the Nifty 50 Index displays a bullish trend, but recent gains have pushed it close to overbought territory. Traders should be cautious as the index nears the significant resistance level of 25,375, where upward momentum may face challenges. It is advisable to set a strict stop-loss at this resistance to protect profits and manage risk.

Traders are encouraged to book profits in the near term to secure gains before any anticipated pullback. Key support levels to consider for re-entry are 25,025 and 24,825, providing good opportunities to buy on dips within the overall bullish trend. Short selling is not recommended in this environment.

Nifty Midcap Select Index Update

The Nifty Midcap Select Index is approaching a resistance level at 13,200, likely halting its upward movement temporarily. Near-term traders should book profits now to mitigate risk ahead of the expected pullback. Key support levels to watch are 12,960, 12,810, and 12,700, which may offer favorable entry points for buying during the pullback.

Overall, traders should focus on accumulating positions during pullbacks to align with the ongoing bullish trend while avoiding short-selling risks.

(Disclaimer: Ravi Nathani, an independent technical analyst, provided these insights. He holds no positions in the mentioned indices. This content is not a recommendation for any security transactions.)

Original Story https://www.business-standard.com/markets/news/nifty50-midcap-select-index-hit-key-resistance-should-you-book-profits-124090200041_1.html
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