NIFTY 50 Hits All-Time High - Is It Time to Book Profits?
The NIFTY 50 index recently reached a record high of 23,100, marking a significant milestone. However, this peak is accompanied by concerning signals that suggest a potential downturn. Despite the achievement, the index is displaying weak momentum, evidenced by a bearish divergence in the Relative Strength Index (RSI) and the formation of bearish candle patterns over the past two days.
These indicators raise the question: Is it time to book profits and wait for more favorable entry points?
Moreover, the NIFTY 50 has formed a triple top pattern, which is a classic bearish signal. If the index breaks below the neckline at 21,800, it could further decline towards 21,200, where it might find support around the 200-day moving average (MA).
In the near term, the technical charts suggest that a correction is on the horizon. Given these signals, it might be prudent for investors to consider booking profits and waiting for the market to present more attractive entry levels.
These indicators raise the question: Is it time to book profits and wait for more favorable entry points?
Moreover, the NIFTY 50 has formed a triple top pattern, which is a classic bearish signal. If the index breaks below the neckline at 21,800, it could further decline towards 21,200, where it might find support around the 200-day moving average (MA).
In the near term, the technical charts suggest that a correction is on the horizon. Given these signals, it might be prudent for investors to consider booking profits and waiting for the market to present more attractive entry levels.