Nifty Pharma nears major hurdle at 14,536; Realty remains range-bound

According to Ravi Nathani, an independent technical analyst, given the overbought conditions on Nifty Pharma traders are advised to book profits and adopt a cash position for near- and short-term.

Nifty Pharma index signals overbought conditions; Traders advised to book profits

The Nifty Pharma index is currently trading at a CMP (Current Market Price) of 14,478.35 and is showing signs of being in an overbought zone. To allow for a cooling-off period, traders are urged to consider booking profits and adopting a cash position for both the near and short term.

A significant resistance level is anticipated at 14,536, which coincides with the R2 level as per the pivot indicator. This resistance level could impede further upward movements in the index.

For near-term traders, a close below 14,330 may trigger selling pressure on the charts, potentially leading to a correction in the market. In such a scenario, the next support levels are expected around 13,980 and 13,680.

 

Given the current market conditions, the most prudent trading strategy is to secure profits and remain in cash until the index cools off. Monitoring the index's performance and staying updated on market developments will be essential for making informed decisions in the Nifty Pharma Index.

Nifty Realty index indicates range-bound movement; Traders advised on breakout strategies

The Nifty Realty index is currently trading at a CMP (Current Market Price) of 541.35, demonstrating a range-bound pattern on charts within the range of 549 to 530. A decisive trade above or below this range would serve as a trigger for potential market direction.

Support levels are expected around 510 and 480, providing crucial reference points to prevent significant downside movements in the index. Conversely, resistance levels are projected at 555, 564, and 580, which could limit further upward movements.

The recommended trading strategy involves waiting for a breakout in either direction and subsequently trading accordingly in the direction of the breakout.

Patiently monitoring the index's movement will allow traders to capitalize on potential market shifts. For more risk-tolerant traders, an alternative strategy would be to sell near the higher range of the consolidation (549) and buy near the lower range (530) until a decisive breakout occurs.

As the Nifty Realty Index continues its range-bound movement, remaining vigilant and staying updated on market developments will be crucial for making well-informed trading decisions.

(Ravi Nathani is an independent technical analyst. Views expressed are personal).