Navigating Nifty Energy: A simple strategy for potential gains
However, the strategy goes beyond merely investing in the index itself. Diving deeper, traders should consider buying the individual components of the index. This diversified approach spreads the risk and enhances the potential for returns.
Examining recent developments on the hourly charts reveals an encouraging trend. Following a period of stability, the index displays a positive breakout, indicating an upward movement. In the short term, traders should be aware of potential resistance levels at 26,900 and 27,550.
To effectively manage risk, it is vital to adhere to the stipulated stop-loss level, maintaining it below 26,100 upon the market’s closure. By exercising caution and employing this simple yet strategic approach, traders can navigate the complexities of the market, make informed decisions, and potentially secure profitable outcomes.
Nifty Commodities index: Charts exhibit range bound moves
Looking at the charts, it seems that the Nifty Commodities index (last close: 6,307.3) is moving within a limited range, bound by 6,325 on the upper side and 6,235 on the lower side.
On the other hand, those who prefer a more cautious approach should wait for a clear breakout on the charts before making any trades. This means waiting for a confirmed move above 6,325 or below 6,235 before deciding which direction to trade in.
Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He doesn’t hold any positions in the indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security.