The Nifty Energy index has lost more than 16% of its value in the first two months of 2023, but the recovery in March 2023 suggests a turn around is imminent.
The index is trading at a point of support on the weekly chart.
- Falling Channel: Two parallel trendlines that slope downward together form the channel. The resistance level is represented by the upper trendline, while the support level is represented by the lower trendline. At the channel’s support line, the fall has come to an end.
- Fibonacci retracement is a well-liked technical analysis tool that traders employ to find probable levels of support and resistance in a price trend. The index has found support on the chart at the 38.20% Fibonacci level of the increase from the lows in March 2020 to the high in April 2022.
- Piercing Candlestick Pattern: This pattern of two candles shows a change in the market’s mood from negative to bullish. The trend reversal is strengthened by the reversal pattern that is emerging at the channel’s support and the Fibonacci retracement.
- The 200-week exponential moving average (WEMA) is a closely studied indicator because it can reveal important details about the long-term trend of an asset.
The Energy index, on the other hand, increased by over 5% in March 2023, outperforming the Nifty50, which is down about 1%.
Keep an eye on the Nifty Energy index’s components:
• Reliance Industries, Limited
• NTPC Limited
• India’s Electricity Grid Corporation Ltd.
• Petroleum and Natural Gas Corporation, Ltd.
• Adani Green Energy Limited
• Bharat Petroleum Corp. Ltd.
• Tata Power Co., Ltd.
• India Oil Corporation Limited
• GAIL India Limited
• Adani Transmission Limited
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Disclaimer: This content is provided solely for informational reasons. It should not be seen as a stock recommendation because it is not one.
