Nifty Energy Index
The Nifty Energy Index is currently trading at a CMP (Current Market Price) of 24,554.45. The near-term trend for the index is observed to be bullish on the charts.
A significant bullish breakout is anticipated above the level of 24,850. If the index manages to surpass this level, it may signal a strong bullish momentum, and the next target for the index could be around 25,700.
Considering the current market conditions, the recommended trading strategy for this index would be to buy at the current market price (CMP) with a strict stoploss.
Setting a stoploss at a close below 24,150 can help manage risk by providing a predefined exit point in case the price moves against the expected trend.
Nifty Metal Index
The Nifty Metal Index is currently trading at a CMP (Current Market Price) of 6,020.15. The trend for the index is observed to be bullish on the charts. Based on this trend, the recommended trading strategy would be to buy at the current market price or at every pullback in the index.
The target for such trades can be set at 6,190 and 6,375, representing potential upside levels. To determine a potential reversal of the bullish trend, it would require the index to close below the level of 5,860. If such a close occurs, it may indicate a shift in the trend.
However, it is worth noting that the index has multiple support levels between 5,900 and 5,850, suggesting that the bullish trend is currently well-supported.
To manage risk effectively, it is advisable to set a strict stoploss within the support range of 5,900-5,850. By doing so, traders can limit potential losses if the price moves against their expectations.
Nifty Pharma Index
The Nifty Pharma Index is currently trading at a CMP (Current Market Price) of 13,622.75. The overall trend for the index is observed to be bullish.
However, it is important to note that there is a significant resistance level expected around 13,750 on the charts. A close above this level would indicate a fresh breakout and suggest that the bulls have a stronger presence in the market for the near term.
In such a scenario, the next immediate resistance level to watch for would be around 14,275. On the charts, there are strong support levels anticipated around 13,290 and 13,125. These levels act as potential buying opportunities for traders. Buying on dips, that is, purchasing the index when it experiences temporary price declines, would be the recommended trading strategy.
It is essential to closely monitor the price movements and market conditions to validate the breakout above 13,750 and assess the strength of the bulls. Proper risk management techniques, such as setting stop-loss orders, are crucial to mitigate potential losses.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).