 "Chart check: Buy the dips in Nifty Pharma, Sell the rallies in Nifty FMCG")
NIFTY FMCG INDEX CMP: 46,132.60 (Range Bound)
As per the hourly charts, it is evident that the NIFTY FMCG index is expected to trade between 46,415 and 45,855. A close above or below this range would trigger a directional movement in the market. Furthermore, the 50-day Exponential Moving Average (EMA) at 45,935 is acting as a crucial support level for bullish traders in the near term. A close below this level could indicate a bearish phase, increasing the possibility of violating the lower support of the range.
Additionally, the Moving Average Convergence Divergence (MACD) indicator is sloping downward, further supporting the bearish outlook in the near term. Based on these technical parameters, the optimal trading strategy for traders would be to sell on the rise or sell near resistance levels, and buy near support levels until a clear-cut pattern emerges on the charts. Sideways consolidation is expected in the near term, trading with negative bias.
Additionally, the Moving Average Convergence Divergence (MACD) indicator is sloping downward, further supporting the bearish outlook in the near term. Based on these technical parameters, the optimal trading strategy for traders would be to sell on the rise or sell near resistance levels, and buy near support levels until a clear-cut pattern emerges on the charts. Sideways consolidation is expected in the near term, trading with negative bias.
NIFTY PHARMA INDEX CMP: 12574.20 (Buy on dips)
It has been discerned that the near-term trend is displaying a bullish bias, indicating a possible upward momentum in the market. The next resistance levels, as indicated by the charts, are anticipated to be situated around 12,900 and 13,275, which could potentially act as formidable barriers for the index, impeding its further upward movement.
The positive signal from the Moving Average Convergence Divergence (MACD) indicator further reinforces the optimistic outlook for the short term, providing additional evidence of the bullish sentiment. In addition, the Pivot points, which are crucial technical indicators, suggest that the index has experienced a noteworthy recovery from the S1 (Support 1) levels, indicating a minor resistance at the Pivot levels (12,881).
This could potentially serve as a significant inflection point for the index, shaping its future trajectory. The final target for the month, identified at the R1 (Resistance 1) level of 14,000, provides a projected goal for the bullish movement of the index. Furthermore, it is noteworthy that the index has successfully closed above the 200-day Exponential Moving Average (EMA). This positive development is considered a favorable sign for bullish traders, further bolstering the case for a bullish outlook on the NIFTY PHARMA index and its constituents. Given the confluence of these technical parameters, it is recommended that traders adopt a strategic approach of buying on market pullbacks, with a target range of 12,900 - 13,275 - 14,000.
====================================
Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He doesn't hold any positions in the indices.
The positive signal from the Moving Average Convergence Divergence (MACD) indicator further reinforces the optimistic outlook for the short term, providing additional evidence of the bullish sentiment. In addition, the Pivot points, which are crucial technical indicators, suggest that the index has experienced a noteworthy recovery from the S1 (Support 1) levels, indicating a minor resistance at the Pivot levels (12,881).
This could potentially serve as a significant inflection point for the index, shaping its future trajectory. The final target for the month, identified at the R1 (Resistance 1) level of 14,000, provides a projected goal for the bullish movement of the index. Furthermore, it is noteworthy that the index has successfully closed above the 200-day Exponential Moving Average (EMA). This positive development is considered a favorable sign for bullish traders, further bolstering the case for a bullish outlook on the NIFTY PHARMA index and its constituents. Given the confluence of these technical parameters, it is recommended that traders adopt a strategic approach of buying on market pullbacks, with a target range of 12,900 - 13,275 - 14,000.
====================================
Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He doesn't hold any positions in the indices.