Nifty Pharma index may correct in near-term, downside target seen at 12,700

Nifty Realty Index

The Nifty Realty Index is currently trading at a CMP of 522.15. The next resistance levels to watch out for are around 538 and 560, where the index may face selling pressure. The recommended trading strategy in this scenario would be to buy on dips. This means looking for opportunities to enter the market at lower prices, taking advantage of temporary pullbacks or corrections within the overall uptrend. Support levels for the index are expected around 505 and 495, where there couldbe a bounce back due to buying interest. 

Nifty Pharma Index

The Nifty Pharma Index is currently trading at a CMP of 12,976.80. The index is expected to undergo a consolidation phase with a negative bias, as indicated by the correction phase on the daily charts. The consolidation range for the index is between 13,100 and 12,840. A close above or below this range would add a trigger for further price movement in the corresponding direction. It is important to monitor the index's price action in relation to these levels for potential trading opportunities. Various technical indicators, including RSI, MACD, and Stochastic, are showing negative divergence. This suggests that the index may experience a decline in price or a correction in the near term. Considering the negative bias and the indications from technical indicators, the recommended trading strategy would be to sell on rallies or book profits at the current market price. Traders can target potential downside levels around 12,700 and 12,575.

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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He does not hold any positions in the Indices mentioned above.