Here's how to trade Nifty Pharma, FMCG and Energy indices on Nov 8; details

The Nifty Energy Index is currently trading within a well-defined range between 39,700 and 38,150. Given this range-bound movement, a conservative trading strategy of buying near support and selling near resistance would be ideal. Waiting for a decisive breakout or breakdown from this range could signal a stronger directional trend and present clearer trading opportunities. Until then, traders might benefit from cautious positioning within these levels, as the index exhibits no immediate breakout signals.

 

Similarly, the Nifty Pharma Index is also exhibiting range-bound behaviour, with trading levels confined between 23,050 on the upside and 22,350 on the downside. A move above or below this range could signal a new directional phase, and traders should watch these levels closely. Should a breakout above 23,050 occur, it could open room for upward movement, but a breakdown below this range would expose immediate support at 21,625 and 20,900. The best approach for this index remains buying near the lower range and selling near the upper, unless a breakout signals otherwise.

 

The Nifty FMCG Index has recently seen a significant correction, bringing it closer to the support level of 57,700. Given the oversold conditions in this index, a technical bounce could be expected in the near term. Buying on dips near the support zone appears to be the most favourable trading strategy for now, with immediate resistance levels at 59,980. A close above this resistance could extend the upward momentum to targets around 61,250 and 62,250. Traders with a higher risk tolerance could place stop-losses near 57,500, while those with a more cautious approach may consider a tighter stop around 57,700.

 

In summary, the Nifty Energy and Pharma indices remain range-bound, favouring buy-near-support and sell-near-resistance strategies until a decisive move confirms a breakout. On the other hand, the Nifty FMCG Index appears to offer near-term buying opportunities given its recent oversold status and potential for a technical bounce. Traders should keep a close watch on the specified breakout levels across all indices to adjust their strategies accordingly.

 

(Disclaimer: Ravi Nathani is an independent technical analyst. Views are his own. 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.)