 "Sell Nifty Auto index on rise as charts show bearish near-term trend")
Nifty Auto Index
As of the current market price (CMP) of 15,921.25, the Nifty Auto Index finds itself in a near-term downtrend, based on chart analysis. This means that the recent price movements have shown a tendency towards lower levels. For traders looking to capitalise on this downtrend, the best strategy to consider is selling when the index experiences an upward move.
However, this strategy should be executed with caution and discipline. A crucial aspect of risk management in this strategy is to place a strict stop-loss at 16,050. The target for this selling strategy can be set at 15,750, 15,670, and 15,580. These levels represent potential areas where the index may find support or encounter barriers during its downward journey.
Additionally, it's worth noting that other technical indicators, such as Pivot Levels and the Relative Strength Index (RSI), are aligning with this bearish outlook on daily charts. The pivot level for this month, for example, is at 15,550, further supporting the case for a potential downward move.
However, this strategy should be executed with caution and discipline. A crucial aspect of risk management in this strategy is to place a strict stop-loss at 16,050. The target for this selling strategy can be set at 15,750, 15,670, and 15,580. These levels represent potential areas where the index may find support or encounter barriers during its downward journey.
Additionally, it's worth noting that other technical indicators, such as Pivot Levels and the Relative Strength Index (RSI), are aligning with this bearish outlook on daily charts. The pivot level for this month, for example, is at 15,550, further supporting the case for a potential downward move.
Nifty Pharma Index
Currently priced at 15,355.30, the Nifty Pharma Index is projected to stay within a range in the near term, as indicated by chart analysis. This means that market movements are expected to fluctuate between certain upper and lower limits, presenting opportunities for traders to strategise.
The envisaged range is bounded by 15,460 on the upper side and 14,990 on the lower side. Any trade and subsequent close above or below this range can trigger noteworthy directional movements. For traders, it's essential to understand the potential outcomes when this range is breached. Closing above 15,460 could be a sign of an emerging upward trend. In such a case, the next resistance level to watch for is around 15,625.
Conversely, a close below 14,990 may signal a shift towards a bearish sentiment. In this scenario, the next support levels are projected to be at 14,880 and 14,725. Given these dynamics, the most prudent trading strategy at this juncture would be to wait for a clear breakout and then execute trades in the direction that the breakout indicates.
=======================================
Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. 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.
The envisaged range is bounded by 15,460 on the upper side and 14,990 on the lower side. Any trade and subsequent close above or below this range can trigger noteworthy directional movements. For traders, it's essential to understand the potential outcomes when this range is breached. Closing above 15,460 could be a sign of an emerging upward trend. In such a case, the next resistance level to watch for is around 15,625.
Conversely, a close below 14,990 may signal a shift towards a bearish sentiment. In this scenario, the next support levels are projected to be at 14,880 and 14,725. Given these dynamics, the most prudent trading strategy at this juncture would be to wait for a clear breakout and then execute trades in the direction that the breakout indicates.
=======================================
Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. 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.