Nifty Pharma index needs to breakout above 14,900 for a bullish move

According to Ravi Nathani, an independent technical analyst, the select momentum oscillators on the Nifty IT index have reached oversold zone, thus suggesting a potential rebound in the near term.

Nifty Pharma Index Analysis

The Nifty Pharma Index presents a compelling scenario for traders and investors alike. The current market price is under the influence of key resistance levels, primarily anticipated around 14,900. A close above this level is indicative of a robust bullish sentiment, suggesting that the Bulls have a stronger foothold than the Bears in the market. 

In simpler terms, a breakthrough past 14,900 is likely to trigger a fresh round of buying activities. If the index successfully closes above 14,900, the next resistance level is projected at 15,236, providing traders with valuable insights for strategic moves. 

On the flip side, if the index falters and falls below 14,500, the next support levels are expected to be at 14,336 and 14,000, indicating critical points for market participants to monitor. 

The overarching trend in the market remains bullish according to the charts. However, in the event of a correction and if the index dips below 14,336, both swing traders and investors are advised to actively seek opportunities. Buying the index and its constituents during such phases can be advantageous for short and mid-term gains. 

In summary, a close observation of the 14,900 mark is pivotal for market participants. A breakthrough here could herald significant bullish movements, while a dip below 14,336 might provide an ideal entry point for traders looking to capitalize on potential market uptrends.

Nifty IT Index Buy at CMP or at dips

In the past fortnight, the Nifty IT Index has experienced a sharp correction evident on the charts. However, technical indicators, such as the Relative Strength Index (RSI), are signaling an oversold condition, suggesting a potential rebound in the near term. 

Given these market dynamics, a technical bounce is anticipated. To capitalize on this potential uptick, traders are advised to adopt a cautious yet proactive strategy. Buying the index and its constituents either at the current market price or on dips becomes a prudent move. Setting a strict stop loss at the near term low or the level of 30,000 on a closing basis acts as a protective measure, safeguarding against unexpected downturns. 

This strategy aligns with the imminent technical bounce, allowing traders to enter the market strategically. The target for this move is set at 32,350, providing a clear goal for traders seeking short-term gains. By adhering to this approach, market participants can position themselves favorably, taking advantage of the expected rebound while managing risks effectively.

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