Nifty Realty Index
The current market price (CMP) of the Nifty Realty Index stands at 478.80. On the charts, the index is showing a double-top pattern, which indicates a potential reversal in the trend. This pattern suggests that the index has reached a resistance level and may face difficulty in moving higher.
Additionally, the Relative Strength Index (RSI) is exhibiting negative divergence. This means that while the index has been rising, the RSI indicator is showing a downward trend. Moreover, the RSI is currently in the overbought zone on the charts, implying that the index may be at a higher risk for fresh investments.
Support levels on the charts are expected at 449, 435, and 415. These levels may act as areas of price support or potential buying opportunities for traders. Given the technical signals, the safest trading approach would be to sell the index or its constituents at the current market price or on any price rises. The target for such trades would be the support levels mentioned above.
In summary, the Nifty Realty Index is showing a double-top pattern on the charts, indicating a potential trend reversal. The RSI is displaying negative divergence and is in the overbought zone, suggesting caution for fresh investments. Support levels are expected at 449, 435, and 415.
Traders are advised to consider selling the index or its constituents at the current market price or on any price rises, targeting the mentioned support levels.
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Nifty Pharma Index
The current market price (CMP) of the Nifty Pharma Index stands at 12,678.40. On the charts, there is a negative divergence observed on the Relative Strength Index (RSI), indicating a potential reversal in the trend. Additionally, the near-term RSI charts indicate that the index is in the overbought zone, suggesting caution for traders.
Moreover, the Moving Average Convergence Divergence (MACD) indicator is showing a negative reading, further supporting the bearish outlook for the index. In terms of price patterns, the short-term Exponential Moving Averages (EMAs) of 20, 30, and 50 are located at 12,486, 12,450, and 12,400, respectively. These levels may act as strong support on the charts.
Additionally, the price pattern suggests support between 12,486, 12,400, and 12,300. Based on the above analysis, it is advisable to sell the index at the current market price or on any price rises. The target for this trade would be between the support levels of 12,475 and 12,400.
In summary, the Nifty Pharma Index is displaying negative divergence on the RSI, along with being in the overbought zone on the near-term RSI charts. The MACD indicator also supports the bearish sentiment. The short-term EMAs and price patterns suggest strong support between 12,475 and 12,400. Traders are recommended to sell the index at the CMP or on any price rises, targeting the mentioned support levels.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).