Nifty Energy, Commodities indices may languish in near-term, show charts

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

Nifty Energy
Last close: 24,071.7

Based on technical analysis, it is recommended to carefully observe stop loss range, which falls between 24,245 and 24,350.

It is advised to initiate selling positions on any subsequent price increases, as the index appears to have established a lower bottom, indicating a downward trend.

Various technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), reflect signs of weakness. These indicators are widely used by traders and investors to assess market conditions.

In this case, the RSI and MACD signals suggest a bearish sentiment, reinforcing the notion that selling on price rallies may be a favorable strategy.

To establish a target for selling positions, it is suggested to consider a range between 23,400 and 23,050. This range represents the anticipated downward movement of the Nifty Energy index. By selling on price rises and aiming for this target range, traders may position themselves to benefit from potential market declines.

Nifty Commodities
Last close: 5,800.65

Based on the analysis of various indicators, the trend appears to be downward. The Relative Strength Index (RSI) is indicating a downward trend, suggesting a bearish sentiment for the index.

However, it is worth noting that the near-term moving averages are providing strong support in the range of 5,725 to 5,715. This range is crucial as it represents the last hope for bullish traders.

A close below this range could potentially lead to further declines, with the next support levels at 5,610 and 5,525.

Given the market conditions, it is recommended to adopt a "sell on rise" strategy. This means that traders should consider selling their positions when prices experience upward movement. It is crucial to set a stop loss at 5,925 to limit potential losses in case the market moves against the anticipated downward trend.

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