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Near-term weakness likely for Nifty Pharma, Energy: Check trading strategy

Technical indicators such as RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are both displaying a downtrend on charts for Nifty Pharma

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Ravi Nathani Mumbai

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Nifty Energy Index

The Nifty Energy Index, which last closed at 38,160, is indicating a downtrend in the near term as observed on charts.

A strong support level is anticipated around 36,925, which appears to be an attractive level for a potential technical bounce in the near term.

However, it is crucial to monitor this level closely, as a break below 36,925 could trigger a fresh round of selling, potentially leading to the next support level around 35,250. Hence, it is essential to watch this level carefully.

On the other hand, resistance on the charts is expected between 38500 and 38750. Within this zone, a pullback is anticipated to be completed if the markets do not correct from the current market price.

Investors or swing traders are advised to keep these levels in mind: buying around 36925 if the markets correct from the current market price, and booking profits within the zone of 38500 to 38750 if the markets rally from the current market price.

In summary, the Nifty Energy Index is currently in a downtrend, with a significant support level at 36925.

Traders and investors should closely monitor this level for potential trading opportunities, while also being mindful of the resistance levels for booking profits or initiating buy positions.

 Nifty Pharma Index

The Nifty Pharma Index, which last closed at 18,897, is indicating a downtrend in the near term as observed on charts.

A target/support level is expected at 18236. Given this scenario, the recommended trading strategy would be to sell on rallies or at the current market price, with a stop-loss set at 19300.

Technical indicators such as RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are both displaying a downtrend on charts.

This suggests that selling pressure is likely to persist, resulting in underperformance in both the near and short term.

In summary, the Nifty Pharma Index is currently in a downtrend, with a target/support level expected at 18236.

Traders are advised to sell on rallies or at the current market price, with a stop-loss set at 19300, in line with the indications from technical indicators.

Disclaimer: Ravi Nathani is an independent technical analyst. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. It should not be construed as a recommendation to purchase or sell such securities. 

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First Published: Mar 15 2024 | 7:28 AM IST

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