Nifty 50 Again Struggling Around ATH; VIX Closes at 3-Month Low

[Pelican Press 0]

Nifty 50 Again Struggling Around ATH; VIX Closes at 3-Month Low

The Indian benchmark index again tried to make a new all-time high on Wednesday, rising to a high of 22,521.1. On 1st April 2024, the index marked a new high but since then it has been struggling to cope with the upside momentum. It has moved almost nowhere since it marked a new high and intraday volatility is helping day traders to rack up some gains.

Despite some visible struggles, the broader trend of the index is bullish and traders can look for long opportunities on dips. But what is the ideal level to capitalize? Earlier the resistance of 22,200 was a stiff one, the surpassing of which led to the rally which eventually touched a new high. In technical parlance, a strong resistance often turns to support upon a successful breach. Therefore, 22,200 can be deemed as a good support level where left-out traders may participate to enjoy the subsequent rally.

Another interesting thing to note is that has declined today for the third consecutive session, closing at 11.37, the lowest closing in 2024. Generally, a falling indicates reducing volatility in the market which is often interpreted as a decreasing ***** among market participants.

Therefore, a strong downside is not expected looking at falling VIX and the forecast of index-level movement is also subdued. This means traders might not see high volatility in the immediate future but as election dates come closer, volatility is naturally expected to go up due.

What about the upside? Despite trading near an all-time high, the index is facing a hurdle around 22,500 – 22,530. This zone is keeping the index from rising. Hence, those looking for a mean reversion trade can take advantage of this selling area to play for a correction. But a minor correction should not be confused with a complete trend reversal. As of now, no strong bearish view should be established, at least, as long as the index hovers above 21,800 – 21,700.

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#Nifty #Struggling #ATH #VIX #Closes #3Month

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