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Nifty Energy Index
Last close: 39,283
The Nifty Energy Index, currently at a CMP (Current Market Price) of 39283.15, witnessed a sharp selloff in the last hour of yesterday’s trading session, indicating a negative trend in the near term. Any technical bounce or pullback up to 39,650 is perceived as an opportunity to sell the index and its constituents.
Traders can consider utilizing this potential bounce for selling positions, targeting a support level at 39,000 and a subsequent one at 38,400. This strategy aligns with the negative trend observed on the charts and aims to capitalize on the anticipated downward movements.
In summary, the sharp selloff has established a negative near-term trend for the Nifty Energy Index. Utilizing technical bounces as selling opportunities, with target/support levels set at 39,000 and 38,400, is a strategic approach for traders in the current market conditions.
Nifty Pharma Index
Last close: 18,916
The Nifty Pharma Index, currently at a CMP (Current Market Price) of 18,916.45, is displaying a range-bound pattern on charts, with key levels identified at 19,080 on the upside and 18,800 on the downside.
A decisive close above or below this range is considered a triggering point for potential directional movements.
If the index breaches the upper limit, the next resistance is anticipated at 19,180. Conversely, a breach on the lower side would find support at 18,725 and 18,550. Traders are recommended to adopt a strategy of selling near resistance and buying near support in the absence of a clear breakout.
For risk-tolerant traders, this approach provides opportunities to capitalize on price oscillations within the established range. On the other hand, cautious traders may opt to wait for a clear breakout before initiating positions.
In summary, the Nifty Pharma Index exhibits a range-bound behavior with levels at 19,080 and 18,800. Traders can consider selling near resistance and buying near support until a clear breakout occurs. Waiting for a decisive breakout is advised for those who prefer a safer trading strategy.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
First Published: Feb 22 2024 | 6:36 AM IST
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