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Can the rally in Nifty Realty index sustain? Here's what charts suggest

The Nifty Realty Index could face stiff resistance in the range of 445 to 457 levels.

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Ravi Nathani Mumbai

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Nifty Realty Index
Bias: Sell on Rise

The Nifty Realty Index, a benchmark index that tracks the performance of the real estate sector in the stock market, has recently witnessed a sharp recovery over the past 15 days.

As a result, the index has approached the resistance levels, which could potentially pose a challenge to its further upward momentum. Based on the analysis of daily charts, it is expected that the Nifty Realty Index would face stiff resistance levels in the range of 445 to 457 points.

Hence, traders and investors are advised to remain vigilant and look out for opportunities to book profits within this range, as short-term underperformance could be expected in the days to come.

Considering the technical analysis, the recommended trading strategy for the near term would be to sell on the rise, with a strict stop loss of 460 points, to manage potential risks. Chart analysis indicates that support levels are expected around 409, 400, and 395 points, which could potentially act as a price floor during any corrective phase.

In conclusion, the analysis of the Nifty Realty Index CMP suggests that the index has witnessed a sharp recovery over the past 15 days and is currently approaching resistance levels. Traders and investors are advised to remain cautious and look out for opportunities to book profits within the resistance range. The recommended trading strategy for the near term would be to sell on the rise, with a strict stop loss of 460 points.

Nifty Pharma Index
Bias: Buy on dips

The Nifty Pharma Index, a benchmark index that tracks the performance of the pharmaceutical sector in the stock market, is currently bullish on the near-term charts. However, the current up move is expected to face stiff resistance levels in the range of 12,900 to 13,275 points, which could potentially act as a barrier to further upward momentum.

The recommended trading strategy for traders would be to buy on dips, with a strict stop loss of 12,350 points on a closing basis. Chart analysis indicates that support levels are expected around 12,125, 11,975, and 11,810 points, potentially providing a price floor during any corrective phase.

In the event that the index trades around these support levels, investors could potentially hunt for opportunities to accumulate the index and its constituents for a quick short-term rally.

In conclusion, the analysis of the Nifty Pharma Index suggests that the index is currently bullish on the near-term charts, with resistance levels expected in the range of 12,900 to 13,275 points. Traders are advised to buy on dips, with a strict stop loss of 12,350 points on a closing basis.

Additionally, investors could potentially accumulate the index and its constituents during corrective phases around support levels of 12,125, 11,975, and 11,810 points for a quick short-term rally. However, external factors impacting the sector's performance must be closely monitored.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).

 

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First Published: Apr 20 2023 | 7:18 AM IST

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