Nifty IT, Realty indices look bullish on chart: Ravi Nathani

Nifty Realty Index

Bias: Bullish

Last close: 397.75

The NIFTY REALTY INDEX has shown some resilience, with a pullback after a sharp correction. However, the resistance at 403, a 20 DSMA, poses a challenge for the index. If the index manages to surpass this level, it would mark a crucial breakout on charts. The next targets for investors would be 415 and 430.

To benefit from this possible trend, traders are advised to buy stocks when the price rises above 403, or post-violation dips, for the target of 415 and 430.

Investors are also advised to be cautious and set a strict stop loss of 380 on a closing basis to avoid losses in case the index falls below this level.

In conclusion, the NIFTY REALTY INDEX has experienced a pullback and is facing resistance at 403. Traders and investors must be alert to any signs of upward momentum and buy stocks accordingly. The next targets for the index are 415 and 430. Setting a strict stop loss of 380 on a closing basis will limit the potential downside risk.

Nifty Pharma Index

Bias: Pullback expected

Last close: 11,764.40

The NIFTY PHARMA INDEX is currently experiencing a bearish phase, with a CMP of 11,764.40.

Due to this trend, the index has become oversold on the charts, indicating a possible reversal in the near term. Technical analysis suggests that a technical bounce may be expected, and the index may face resistance at 12,500 and 12,950 levels.

Moreover, technical indicators such as William % R, Stochastic, and RSI are also trading in an oversold zone, further indicating the likelihood of a pullback.

The most effective trading strategy for traders would be to buy stocks on dips.

In conclusion, investors should be aware of the bearish trend in the NIFTY PHARMA INDEX and plan their trades accordingly, keeping in mind the expected pullback and the potential resistance levels.

Nifty IT Index

Bias: Bullish

Last close: 30,097.75

The NIFTY IT INDEX is currently trading at a CMP of 30,097.75 and is showing bullish trends. Yesterday's sharp recovery in the index after a sharp sell-off indicates that a technical bounce is expected in the near term.

Furthermore, the index has bounced, touching the lower Bollinger band, which suggests a stiff resistance expected around the 20-day simple moving average at 30,625.

Additionally, based on the price action and chart pattern, a 50 per cent correction level is also at 30,600, indicating a strong resistance at that level. Therefore, it can be understood that the index has stiff resistance at 30,600 levels.

The best trading strategy for traders would be to buy on dips, with a stop loss of 29,600 and a target expected at 30,600.

In conclusion, the NIFTY IT INDEX is showing bullish trends, with a technical bounce expected in the near term. Traders can adopt a buy-on-dips strategy with a stop loss of 29,600 and a target of 30,600.

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