INSUBCONTINENT EXCLUSIVE:
Stock Market, BSE, NSE, Nifty, Capital(Photo: Shutterstock)3 min read Last Updated : Sep 27 2024 | 6:27 AM ISTNifty Energy Index: Bullish
Trend with Profit Booking Expected
The Nifty Energy Index is currently in a bullish trend, but it has reached a critical resistance level
at 44,325 in the near term
As the index approaches this level, traders should consider booking profits and reducing long positions
Profit booking is expected to occur on any further rise from this resistance point
For those looking to re-enter, a pullback is anticipated, with support levels on the charts at 43,800, 43,600, and 43,200
The best trading strategy would be to take profits at the current market price (CMP) and wait for a pullback towards these support levels
before initiating fresh long positions
This approach will allow traders to enter the market at more favorable levels after the profit booking phase concludes.Click here to connect
between 23,450 and 22,925
A close above or below these levels would act as a directional trigger, leading to either a bullish or bearish breakout
Until such a breakout occurs, the best strategy is to wait for clearer signals
For risk-tolerant traders, buying near the support level of 22,925 and selling near the resistance level of 23,450 is a viable approach,
with a strict stop-loss at the breakout levels
However, multiple technical indicators suggest the index is overbought, increasing the likelihood of a pullback
A sell-on-rise strategy is more appropriate in this scenario, especially for traders looking to avoid excessive risk
It would be prudent to wait for a breakout before making any significant moves, but selling near resistance levels presents a lower-risk
opportunity in the current conditions.Conclusion
For the Nifty Energy Index, the key level to watch is 44,325, where traders should book
profits and wait for a pullback towards the support levels before considering fresh long positions
In contrast, the Nifty Pharma Index remains range-bound, but overbought conditions suggest a sell-on-rise strategy is appropriate
Risk-averse traders should wait for a breakout from the range, while more aggressive traders can trade within the range with tight
Both indices present profit-taking opportunities in the near term, and waiting for better entry points post-correction is the ideal
strategy.(Disclaimer: Ravi Nathani is an independent technical analyst
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
It should not be construed as a recommendation to purchase or sell such securities.)First Published: Sep 27 2024 | 6:17 AMIST
