Ravi Nathani recommends to focus on realty, pharma shares on dips

The technical analyst also advices to avoid media stocks for now, as the Nifty Media index could side to 1,631 level.

Nifty Realty

Outlook: Buy on dips

Last close: 389.45

The current market price (CMP) of the NIFTY REALTY index is 389.45, with a negative trend apparent on the charts. Support is expected around 380, which represents a potential buying opportunity around the 382-380 levels, thereby allowing investors to purchase the index and its constituents.

Notably, the Pivot S2 level is around 380, which further reinforces the potential support at this level.

However, a positive divergence is observed on the Relative Strength Index (RSI), indicating a potential bullish reversal in the short term. In light of this, investors must consider accumulating the index at dips for short-term gains, while maintaining a strict stop loss of 365 on a closing basis.

Nifty Pharma

Outlook: Buy on dips

Last close: 11,933.35

The NIFTY PHARMA index has undergone a significant decline, causing the index to be oversold on numerous oscillators and technical indicators, thereby resulting in a consolidation phase near its robust support levels.

Given these factors, it is recommended that traders and investors capitalize on the buying opportunity at the current market price to yield significant returns in the near term.

Notably, a technical bounce is expected due to the oversold status on the various indicators, which could potentially drive the index towards its next resistance level of 12,400.

To manage risk, it is imperative to adopt a stringent stop-loss approach that should be set at 11,730, based on the closing basis.

Therefore, the ideal trading strategy for traders and investors would be to adopt a "buy either CMP or at dips" approach.

Nifty Media

Outlook: Stay Away

Last close: 1,768.55

The NIFTY MEDIA index has observed a downward trend on the charts, with the last hope for the bulls situated at 1,750. If the index falls below this crucial support level, it could potentially trigger a breakdown, causing further decline in the index.

In such a scenario, the next support level would be at 1,631.00, which would also be a critical support level to watch out for.

Traders who are willing to take risks could potentially buy at the current market price (CMP) with a stringent stop-loss strategy in place at 1,750 for a potential technical bounce.

However, it is recommended that investors refrain from taking action until the index falls to the 1,631 level before initiating fresh investments in this index. Given the downward trend of the market, it is advisable to avoid short-term investments in this sector until a clearer market trend is established.

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