Nifty Energy, Commodities: Awaiting directional move

According to Ravi Nathani, an independent technical analyst, the Nifty Energy index is swinging between 26,650 - 26,080 range; whereas the Commodities index is consolidating between 6,340 - 6,150.

Nifty Energy Index Consolidation on charts

The Nifty Energy Index, currently standing at 26,171, on daily charts, it's in a consolidation mode, swinging between 26,650 and 26,080. This range is crucial, as breaking out of it could set the tone for where the index goes next.

The lower range of 26,080 has become a talking point, as the index sits quite close to it. This hints at a possibility of it dropping further, with the next support line seen around 25,425. This is something to keep an eye on, especially for those managing risks.

However, if things take a bullish turn and the index surpasses the upper range of 26,650, it could mark the beginning of a positive trend. The next hurdle in this case would be around 27,375. Therefore best trading strategy would be to wait for a breakout and than take the trade.

In summary, the Nifty Energy Index at 26,150 is currently going through a crucial phase of consolidation, and where it goes from here is the big question. The range of 26,650 - 26,080 is a pivotal battleground, and its breakout could lead to significant moves. As always, a cautious approach and strategic thinking remain key in navigating these market movements.

Nifty Commodities Index Locked in Range, Awaiting Directional Clue

The Nifty Commodities Index is currently at 6,227.20 and seems stuck in a range on the charts. This range stretches from 6,150 on the lower side to 6,340 on the higher side.

The big question is: will it break out of this range? The outcome matters because if it closes above or below these levels, it could signal a move in that direction.

Breaking above 6,340 might lead to a resistance around 6,464, while breaking below 6,150 might seek support around 5,960. For traders, the best approach might be to wait and watch. It's a waiting game for a clear breakout before making any big decisions. This strategy makes sense given the uncertainty within the current range.

In a nutshell, the Nifty Commodities Index is stuck between 6,150 and 6,340. Traders are watching closely for the breakout that will determine its next move.

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