Indian Equity Market Analysis – April 12, 2024: Caution Advised Amid Overbought Conditions
As per the technical chart of Nifty, the Indian equity market appears to be on the overbought side. Traders are advised to approach trading at these levels with caution. Several Indian agencies have expressed concerns about the current behaviour of the market, viewing it as exhibiting signs of a bubble. Despite these concerns, the market shows no signs of slowing down, consistently setting new highs.
At present, the Nifty’s support zone is around 22,650 in the short term. However, due to unfavourable data from the US, there is a possibility that these levels may be tested during Friday’s session. If the market closes below 22,650 or fails to hold these levels, the next support level to watch for is around 22,500.
Moreover, with the market reopening after the Eid holiday, it is crucial to keep a long-term view in mind. The 21,800 level holds significant importance from a long-term perspective. It is advisable to consult with a financial advisor before making any trading decisions. By understanding the market and implementing proper risk management strategies, traders can trade with stop-loss orders in place.
Stay informed, stay cautious, and trade wisely.