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Nifty Metal Index: Short-Term Downtrend with Resistance at 7,564
The Nifty Metal Index, currently at 7,524, is experiencing a short-term downtrend on charts. While a minor technical bounce is anticipated, traders should be mindful of stiff resistance levels at 7,564 and 7,616.
Only a decisive close above 7,616 would indicate a potential reversal, opening the door for further upward movement with the next target at 7,740. Until the critical level of 7,616 is breached, the recommended trading strategy for traders is to adopt a sell-on-rise approach.
The target for this bearish stance is set at 7,175, with an extended target at 7,075. This strategy aligns with the prevailing short-term downtrend observed in the Nifty Metal Index.
It's crucial for traders to exercise caution and implement risk management strategies, considering the resistance levels and the overall market conditions.
This approach enables traders to make informed decisions while navigating the current trend in the Nifty Metal Index effectively.
In summary, the Nifty Metal Index is currently in a short-term downtrend, and traders are advised to sell on upward movements until the resistance levels are decisively surpassed.
Monitoring price action around the identified resistance levels is key to managing risks and optimizing trading strategies in the current market scenario.
Nifty Pharma Index: Range-Bound Trading
The Nifty Pharma Index, currently at 16,238, is exhibiting a range-bound pattern on charts. The identified range for this consolidation phase is between 16,470 on the upper side and 15,730 on the lower side.
The crucial pivot lies in a decisive close either above or below this range, which would act as a trigger, indicating the potential direction of the market.
Given the current scenario, the optimal trading strategy for traders is to capitalize on the range-bound nature of the index.
Buying near the identified support levels and selling near resistance levels aligns with the expectation of continued consolidation until a clear breakout is observed on charts.
The specified range of 16,470 - 15,730 serves as a guide for traders, and any movement beyond these levels would provide valuable insights into the future trajectory of the Nifty Pharma Index.
Traders are advised to exercise patience and closely monitor the price action for signs of a decisive breakout.
In summary, the Nifty Pharma Index is currently in a range-bound phase, and traders are recommended to adopt a strategy that leverages support and resistance levels until a clear direction is established.
This approach allows traders to navigate the market effectively, making informed decisions based on the confirmed breakout from the identified range.
Disclaimer: Ravi Nathani is an independent technical analyst. 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.
