Nifty Pharma index looks weak on charts; support at 11,700-11,800 levels

Sell the Nifty Pharma index and its constituents and book profits, as the index has been underperforming in recent days

Nifty Realty Index

The Nifty Realty Index is currently trading at 461.55. After experiencing a significant rally in the near term, the index has approached a resistance level of 485. At present, the index is consolidating near the top within a range of 480 to 450. A decisive move above or below this range would likely trigger a strong directional movement.

Based on the analysis, it is anticipated that the index will break towards the lower range and underperform the overall market in the near and short term. This prediction is supported by the breakdown of the Relative Strength Index (RSI) from 70 to 64, indicating a shift in bearish sentiment. Additionally, the index is displaying a pattern of lower tops and lower bottoms, further emphasizing the bearishness on the charts.

On the downside, support levels are expected to be found around 436, 425, and 410. Investors are advised to seek opportunities for accumulating positions in this index specifically around the 410 level, as it is considered the most favorable buying option according to the analysis.

Nifty Pharma Index

The Nifty Pharma Index is currently trading at 12,440.45. It is anticipated that the index will face strong resistance levels around 12,485 to 12,610. To manage risk, it is advisable to implement a stop-loss strategy at 12,680. Therefore, the recommended trading strategy for both traders and investors would be to sell the index and its constituents and book profits, as the index has been underperforming in recent days.

Several technical indicators, such as the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic, are displaying a negative trend, further supporting the bearish outlook for the index. On the downside, support levels are expected to be around 12,000, 11,800, and 11,700. If the index were to trade at or below 11,800 on any given day, it would present an opportunity for investors to consider buying the index for short-term gains.

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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 and this is not an offer or solicitation for the purchase or sale of any security.