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These three Nifty sectoral indices look positive on charts

According to Ravi Nathani, an independent technical analyst, one can adopt a 'Buy on Dip' strategy in Nifty Energy, Commodities and MNC indices.

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Ravi Nathani Mumbai

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Nifty Energy Index
Bias: Buy on dips

The Nifty Energy Index is currently trading at 23,443.65 and displaying a bullish trend on the charts in the near term. As such, traders are advised to accumulate the index and its constituents, as short-term targets are expected at 23,875, 24,200, and 24,400. A stop-loss should be placed below 23,050 on a closing basis.

Technical indicators such as the Relative Strength Index (RSI) and Stochastic are providing further evidence of an impending upward movement or outperformance in the short term.

In light of these indicators, it is recommended that traders adopt a "buy on dips" approach to maximize returns.

Nifty Commodities Index
Bias: Buy on dips

The Nifty Commodities Index, currently trading at 5,712.80, is displaying a bullish trend in the short term on the charts. Traders are advised to buy the index on dips, with a strict stop loss of 5,620 on a closing basis. The resistance is expected to be around 5,790 - 5,910 - 5,980, making it a profitable opportunity for traders to invest in.

The technical indicators, including RSI, which is above 63, and MACD, indicating outperformance with histogram bars above 0, also support this strategy. Considering the overall performance of the charts, it would be prudent for traders to follow a buy-on-dips strategy.

Nifty MNC Index
Bias: Buy on dips

The Nifty MNC Index is currently trading at 19,593.10, and based on the hourly charts, the index and its constituents are a buy with a target of 19,725 - 20,000.

Traders are advised to be bullish for the short term as an outperformance is expected, given that the index has given a positive breakout on the daily charts. Therefore, with a stop loss of 19200, traders should be vigilant and look for an opportunity to buy the index on dips.

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


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First Published: Apr 28 2023 | 7:43 AM IST

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