Nifty Metal to be range-bound; Pharma index bullish with need for caution

The Nifty Metal index is likely to oscillate between the levels of 6675 and 6580; a pullback should be awaited in Pharma index, says Ravi Nathani

Nifty Metal Index: Hourly Charts Signal Range-Bound Trading

The Nifty Metal Index (last close: 6633.45) is currently showing signs of range-bound trading based on the hourly charts. The index is likely to oscillate between the levels of 6675 and 6580, with a decisive move above or below these levels expected to trigger significant directional shifts.

In the event of the index breaking below the lower range, support levels on the charts are identified at 6480 and 6390. Conversely, if the index surpasses the upper range, the next resistance zones are anticipated to be situated between 6700 - 6730 and 6770 - 6795. As long as the index remains within the established range, the best trading strategy is to exercise patience and wait for a confirmed breakout.

Alternatively, for those willing to assume higher risk, selling near the resistance levels and buying near the support levels could be considered. It is imperative for traders to adopt strict risk management practices, including setting appropriate stop-loss levels, to safeguard their positions in the event of unexpected price movements.

Nifty Pharma Index: Traders Advised to Exercise Caution Amid Bullish Trend

The Nifty Pharma Index (last close: 14943.40) has witnessed a positive run, prompting traders to consider profit-booking with a strict stop loss set at 15110 on a closing basis. Following this, a prudent approach would be to wait for a pullback in both the near and short term.

Chart analysis indicates the first support level to be expected around 14400. At this level, investors may find potential buying opportunities as the overall trend remains bullish for the short term. For risk-tolerant traders, selling on any upward price movement with a strict stop loss at 15110 (on a closing basis) can be a strategy to consider.

However, caution must be exercised, given the bullish trend in the market. Conversely, conservative traders are advised to wait for the anticipated pullback and commence buying activity near the support level at 14400, as identified on the near-term charts.

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.