Charts signal bearish trend for Nifty Pharma in near-term: Ravi Nathani

According to the technical analyst, traders must adopt 'sell-on-rise' strategy for Nifty Pharma, Nifty Energy, and Nifty Midcap 100 indices

Nifty Pharma
Last close: 11,700.40
 

Charts suggest the near-term trend is downward for the Nifty Pharma index. The expected support levels for the index are between 11,300-11,250. For traders, the best strategy would be to sell on the rise, while investors should wait until the correction is complete before accumulating between the support levels.

Technical indicators such as the MACD (Moving Average Convergence Divergence) show a downward trend, while the Bollinger Bands are sloping downwards. This indicates that underperformance is expected in the market.

In simpler terms, the bears are expected to be stronger than the bulls until the index reaches the support levels.

Traders and investors need to be cautious and pay attention to the current market trends before making any trading decisions. It is essential to follow the technical indicators and support levels to make informed decisions that can help in minimising losses and maximise gains.

Overall, the current market trend suggests that the pharma index may continue to underperform until it reaches the support levels.

Nifty Energy
Last close: 22,682.15
 

The index has reached its resistance level in the near term. Yesterday's sharp sell-off in the market indicates that a correction may be seen on the charts.

The best trading strategy for traders would be to sell on the rise with a target of 22,250 and a strict stop-loss of 23,000 on a closing basis.

Traders need to be cautious as many technical indicators are highlighting a downtrend in the market. The current market trend suggests that the index may continue to face resistance in the near term, which can lead to a correction.

Nifty Midcap 100
Last close: 30,948.65
 

Charts suggest that the index has experienced a sharp rally in the near term. However, a pullback correction is expected in the near term, and the support on charts is expected around 30,600, which is also the 20-day simple moving average (DSMA) on daily charts.

Traders should keep a note of this level as a close below 30,600 would open doors for 30,250 and 30,000. The best trading strategy for traders would be to sell on the rise until the index reaches the above-mentioned support range.

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