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Here's what the charts suggest for Nifty Realty, Media, Pharma indices

According to Ravi Nathani, an independent technical analyst, one should look to book profits in Nifty Realty either at current levels or on rally.

Trading Strategy
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Trading Strategy

Ravi Nathani Mumbai

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Nifty Realty Index
Bias: Sell on Rise

The Nifty Realty Index is currently trading at 435.95 after a sharp rally on the charts. However, it has been consolidating for the past seven days, and traders are advised to book profits at the current market price of anything between 440-449. This would be the best trading strategy for near-term traders.

Technical indicators such as the RSI are showing negative divergence, while the stochastic is placed in the overbought zone. Additionally, with the derivative expiry taking place today, the index may consolidate within a range. However, any rally from hereon should be treated as an exit from all long positions, with a target of 410-400.

It is important for traders to keep a close eye on the charts and monitor the index's movements. It is always better to book profits when the opportunity presents itself rather than hold on to positions in the hope of further gains. Taking a cautious approach and being prepared to exit positions at the right time can help minimize potential losses and maximize profits.

Nifty Media Index
Bias: Buy on dips

The Nifty Media Index is currently trading at 1,675.50 and is range-bound on the charts between the levels of 1,660 and 1,680. A trade and close above or below this range would add a trigger in the respective direction.

Opportunistic traders and investors may consider buying the index and its constituents at dips as the post-correction on the daily charts and the current consolidation attract a technical bounce post a violation of the aforementioned range.

Therefore, the best trading strategy for traders would be to wait for a breakout to happen or buy near the support price with a strict stop-loss of 1636 as per the closing basis. This would limit potential losses in case of a breakdown.

Overall, the Nifty Media Index shows potential for an upward move, and traders should closely monitor the charts for any significant movements.

Nifty Pharma Index
Bias: Range-bound

The Nifty Pharma Index is currently exhibiting a range-bound behavior, oscillating within the narrow confines of 12,525 and 12,375.

In order to ascertain a directional move, traders would be well-advised to remain patient and wait for a decisive violation of the range boundaries. Once a clear signal is generated, traders can then make informed decisions and adjust their trading strategies accordingly.

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


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First Published: Apr 27 2023 | 7:23 AM IST

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