Today's Chart of the Day was shared on Twitter by Amit Seth ( @MaverickAmit01). It's a Weekly chart of the Nifty Pharma Index over the past 12 years with an RSI indicator in the lower pane. Today the index closed at an all-time high after breaking above a six-year base. Why do we care about all-time highs? It's simple. When price is at an all-time high, there's little to no overhead supply to act as resistance, leaving the potential for significant upside. Amit points out that RSI is in a bullish Regime, and 18,827 is the expected target according to 1.618 Fibonacci projection.
In a separate post, Foram Chheda, CMT ( @Foram_chheda) highlighted that as per RRG Chart, Defensive sectors like Consumption, IT, and Pharma are relatively outperforming the high beta economy sensitive sectors like Financials, Realty and Auto.
Therefore, Outperforming sector breaking above its all-time high, provides evidence supporting Pharma's bull case. |
