Nifty Realty Index
The Nifty Realty Index, currently positioned at 465.80, is undergoing a phase of consolidation in the mid-term, fluctuating within the range of 480 to 370. A breakout on the weekly charts would occur upon breaching this range, indicating a potential shift in market dynamics.
Taking into consideration technical indicators such as the Relative Strength Index (RSI), which still has some room to rally, there is an opportunity for accumulation during near-term market dips. However, it is worth noting that the index has recently experienced a rally and is currently trading in an overbought zone.
Additionally, the Stochastic indicator is also in the overbought zone, suggesting the possibility of a corrective phase in the near term. Support levels on the charts are anticipated to be around 436, 425, and 410.
Therefore, the recommended trading strategy for near-term traders would involve selling on price rallies or booking profits in the index and its constituents. On the other hand, investors are advised to wait for market corrections and consider entering positions near the identified support levels.
Nifty Pharma Index
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The Nifty Pharma Index, currently trading at 12,398.55, is displaying a downward trend on the charts. Support levels are anticipated to be around 12,296, 12,010, and 11,810.
Given the technical indicators, such as the downward movement of the Relative Strength Index (RSI) and the sloping downwards of the Stochastic indicator, a bearish phase is expected in the near term.
Consequently, the recommended trading strategy for traders would be to sell on price rallies, as the index is expected to underperform the overall market. On the other hand, investors are advised to wait for the ongoing correction to complete before considering accumulation near the identified support levels.
Nifty Media Index
The Nifty Media Index, currently at a level of 1,676.85, is currently consolidating within a range of 1,764 to 1,636. Until the index breaks out of this range, it is advisable to either wait for a clear breakout or consider buying near the support level and selling near the resistance level.
Risky swing traders may choose to accumulate this index and its constituents at the lower range, as technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are likely to indicate a positive bias when the index surpasses this range.
Therefore, the recommended trading strategy would be to buy on dips, while implementing a strict stop loss based on individual comfort levels.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).