The Nifty index is currently at a critical juncture, as technical charts reveal two crucial points for traders to consider in their trading strategies. The first key point is that if the index remains above the critical support level of 17,315, traders can expect a near-term bottom in place, indicating a bullish market sentiment.
This is a significant level for all bullish positions, as any break below this level may lead to a fresh round of selling, thereby creating a bearish market sentiment. Hence, traders must closely monitor this critical support level of 17315 to make informed decisions.
On the flip side, if the index manages to stay above the support level of 17,315, it could indicate a bullish market trend. In this scenario, traders can use the resistance levels of 17,625, 17,750, 17,925, and 18,090 as potential targets for profit booking.
However, if the index breaks below the support level of 17,315, traders must be cautious and closely monitor the situation to avoid any unexpected losses. The next support level on the charts is around 16,920, which could act as a major support zone for the index.