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Pharma, Energy, Commodities indices look bearish on charts: Ravi Nathani

According to the technical analyst, the Nifty Energy index can drop to 24,239, and the Pharma to 12,100.

Topics
Market technicals | stock market trading | Trading strategies

Ravi Nathani  |  Mumbai 



bear market, sensex, nifty, loss, growth, investment

Nifty Energy Index

Bias: Bearish

Last close: 25,450.30

According to the latest data, the Nifty Energy index is currently trading at 25,450.30. However, the near-term trend is heading downward. I am expecting support to be found around 25,030 and would suggest traders keep a strict stop loss at 24,860.

This is seen as a crucial level for bulls in the near term, as trade and close below this point could lead to a decline down to 24,239.

Therefore, the best trading strategy in this situation would be to wait for the correction to complete and then buy near the lower levels that have been mentioned above.

Intraday No Trade Zone: 25,325 – 25,576

Expected Intraday Resistance: 25,625 – 25,780 - 25,949

Expected Intraday Support: 25,249 – 25,025 – 24,875

Index

Bias: Bearish

Last close: 12,440.10

The Index has recently seen strong resistance at the monthly pivot level of 12,780. Following this resistance, the Index has undergone a correction.

suggests that the first level of support for this downward trend can be found at the S1 level of the Pivot, which currently stands at 12345. Traders and investors should take note that this level also serves as a crucial point for bulls as a close below this level would open the door for further corrections down to 12,100.

Based on this technical analysis, it is recommended that the best trading strategy for this index would be to wait for the correction to fully play out and then consider buying positions around the support level.

In a conclusion, Index is currently facing resistance at 12,780, and correction is expected to continue. Traders should wait for the correction to complete before buying positions.

Intraday No Trade Zone: 12,400 – 12,481

Expected Intraday Resistance: 12,536 – 12,636 - 12,781

Expected Intraday Support: 12,364 – 12,300 – 12,125

Nifty Commodities Index

Bias: Bearish

Last close: 5,818.95

The Nifty Commodities Index is currently experiencing a downward trend. suggests that the index can expect support within the range of 5,775 - 5,740.

This range should also be considered as a last resort for bullish bets as a trade below this range may lead to panic and further corrections down to the next support levels of 5,615 and 5,481.

Technical indicators such as the HMA and EMA of 5/6/10 are sloping downwards and the RSI is also showing a dip. Based on this analysis, the best trading advice for traders would be to wait for the current corrections to fully play out and then consider accumulating positions around the previously discussed support levels.

In conclusion, Nifty Commodities Index is currently trending downwards, support is expected within the range of 5,775 - 5,740. Traders should wait for current corrections to complete and start accumulating the index around the support levels.

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


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First Published: Fri, January 27 2023. 07:45 IST

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