As such, the recommended trading strategy for traders would be to sell the index at the current market price or at any subsequent rise, with a strict stop-loss limit of 12,875 on a closing basis.
Traders are advised to maintain a target of 12,425, and if the index closes below this level, the next support level is expected to be between 12,175 – 12,125.
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In conclusion, the Nifty Pharma Index presents a challenging trading scenario for investors, and the recommended trading strategy is to adopt a cautious approach by selling the index at the current market price or subsequent rises.
With a strict stop-loss limit and a target of 12,425, traders can minimise potential losses and capitalise on potential opportunities that may arise in the future.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).