Trade Setup For July 5: Nifty Poised For Gains If Support Holds

Are you ready to capitalize on the potential market surge?

The Nifty 50 index is showing signs of strength, hinting at a possible bullish run. But, it’s crucial to keep an eye on the key support level of 24,200. If this level holds, we could see the index move higher towards 24,500 and potentially beyond.

Here’s a detailed breakdown of the trade setup and what to watch out for:

The Bullish Case:

• Strong Open: The Nifty opened the week on a positive note, suggesting a bullish sentiment among investors.

• Positive Momentum: The index has been consistently trading above its 20-day moving average, indicating positive momentum.

• Strong Support: The level of 24,200 has acted as a strong support in recent sessions. This suggests that bulls are actively defending this level.

The Risks:

• Global Uncertainties: While the domestic market appears strong, global factors like rising interest rates and geopolitical tensions could impact sentiment.

• Breaching Support: If the Nifty fails to hold the 24,200 support, it could trigger a downward correction.

Trade Strategy:

• Buy on Dip: If the Nifty dips towards the 24,200 support level, consider buying with a target of 24,500 and a stop-loss below 24,100.

• Wait & Watch: If the index breaks below 24,200, it’s best to wait for a clear breakout before entering any trades.

Remember: This is not financial advice. Always conduct your own research and consult with a financial advisor before making any investment decisions.

Key Takeaways:

• The Nifty is showing signs of strength and could be poised for a gain.

• The 24,200 support level is crucial to watch.

• Be prepared for potential volatility and manage your risk effectively.

Stay tuned for further updates and analysis!