 "Nifty Metal, Pharma indices exhibit range-bound moves; wait for breakout")
Nifty Metal
Last close: 6,292.3
Last close: 6,292.3
On the charts, the index is exhibiting a range-bound behavior with key levels identified as 6,325 on the upside and 6,245 on the downside. The index would require a close above or below these levels to confirm a directional bias.
If the index closes above 6,325, it would indicate a bullish breakout, potentially opening the path toward the next resistance level at 6,400. On the other hand, if the index closes below 6,245, it would suggest a bearish breakdown and the next support level to watch would be around 6,150.
Given the current range-bound scenario, the best trading strategy would be to wait for a breakout from this range and then take positions accordingly.
Traders should closely monitor the price action and look for a decisive move beyond either 6,325 or 6,245 before initiating trades. This approach allows traders to capture the momentum in the direction of the breakout and avoid premature entries or false signals.
If the index closes above 6,325, it would indicate a bullish breakout, potentially opening the path toward the next resistance level at 6,400. On the other hand, if the index closes below 6,245, it would suggest a bearish breakdown and the next support level to watch would be around 6,150.
Given the current range-bound scenario, the best trading strategy would be to wait for a breakout from this range and then take positions accordingly.
Traders should closely monitor the price action and look for a decisive move beyond either 6,325 or 6,245 before initiating trades. This approach allows traders to capture the momentum in the direction of the breakout and avoid premature entries or false signals.
Nifty Pharma
Last close: 13,772
Last close: 13,772
On the charts, the trend is bullish, which indicates a positive outlook for the index. However, it is currently consolidating within a range of 13,815 on the upside and 13,580 on the downside. A decisive move above or below this range would act as a trigger for the next directional move.
If the index breaks above 13,815, it would suggest a bullish breakout, potentially leading to the next resistance levels at 13,980 and 142,00.
On the other hand, if the index breaks below 13,580, it would indicate a bearish breakdown, and the next support levels to monitor would be around 13,360 and 13,200.
Given the consolidation phase and the uncertainty within the range, the best trading strategy would be to wait for a breakout.
Traders should closely monitor the price action and look for a clear move beyond either 13,815 or 13,580 before initiating trades. A breakout can provide a strong indication of the next directional bias and offer better trading opportunities.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
If the index breaks above 13,815, it would suggest a bullish breakout, potentially leading to the next resistance levels at 13,980 and 142,00.
On the other hand, if the index breaks below 13,580, it would indicate a bearish breakdown, and the next support levels to monitor would be around 13,360 and 13,200.
Given the consolidation phase and the uncertainty within the range, the best trading strategy would be to wait for a breakout.
Traders should closely monitor the price action and look for a clear move beyond either 13,815 or 13,580 before initiating trades. A breakout can provide a strong indication of the next directional bias and offer better trading opportunities.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).