Nifty Energy, Commodity indices show bearish trends on charts

Nifty Energy Index

The Nifty Energy Index is currently trading at 25,334.40, and the near-term trend for the index is bearish. This indicates a negative sentiment in the market, with potential downward price movements expected. It is worth noting that if the index trades below the level of 25,250, it will trigger a second round of selling pressure. This suggests that the index could face further declines in the near future.

To navigate this bearish environment, traders are advised to adopt a cautious approach. Booking profits on any rallies allows traders to lock in their gains and protect their capital. Holding cash also provides flexibility and the ability to reassess market conditions before entering new positions. By exercising caution and refraining from aggressive trading, traders can mitigate potential losses and position themselves for better trading opportunities in the future.

Nifty Commodities Index

The Nifty Commodities Index is currently trading at 6,091.75, and the near-term trend for the index is bearish. This suggests that the index is likely to experience a downward movement in the coming days. In such a scenario, traders can benefit by adopting a selling strategy, particularly when the index rallies. By selling on these rallies, traders can take advantage of potential downward price movements and profit from the bearish trend.

To further enhance their trading approach, traders can set specific targets based on the next support levels identified on the charts. These support levels are projected at 5,995, 5,864, and 5,700. These levels indicate potential areas where buyers may step in and provide support, leading to a possible pause or reversal in the downward movement of the index. Traders can use these levels as price targets or as indications to reassess their trading positions. By carefully monitoring the index's price action and adhering to this selling strategy, traders can align their trading decisions with the prevailing bearish trend and optimize their trading outcomes.

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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He doesn't hold any positions in the indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security.