GIFT Nifty Drops 50 Points; Trading Setup for Today’s Session

GIFT Nifty Drops 50 Points; Trading Setup for Today’s Session

Keywords: GIFT Nifty, Trading Setup, Technical Analysis, Market Outlook

The GIFT Nifty index opened lower on Monday, shedding 50 points to trade at 18,925.80. The index is expected to remain volatile as we approach the Union Budget on February 1st.

Technical Analysis

The GIFT Nifty index has formed a bearish engulfing candlestick pattern on the daily chart, indicating a potential reversal. The index failed to breach the 19,000 resistance level and closed below the 18,950 support level.

The RSI indicator is currently at 45, indicating a neutral momentum. The MACD indicator has crossed below the signal line, suggesting a bearish trend.

Trading Setup

Given the bearish technical outlook, traders should consider the following trading setup for today’s session:

Sell Below: 18,900
Target: 18,850, 18,800
Stop Loss: 18,950

Alternative Scenario

If the GIFT Nifty index rebounds above 18,950, it could trigger a short-covering rally. In this scenario, traders can consider the following trading setup:

Buy Above: 18,950
Target: 19,000, 19,050
Stop Loss: 18,900

Market Outlook

The GIFT Nifty index is likely to remain under pressure in the short term due to the upcoming budget announcement and concerns over global economic growth. However, a sustained move above 19,000 could indicate a continuation of the uptrend.

Traders should exercise caution and closely monitor market movements before making any trading decisions.