Nifty Pharma Index: Gearing Up for a Breakout?
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Nifty Pharma index is trending within a symmetrical triangle pattern on the daily chart, a classic formation that often precedes a breakout. What adds conviction to this pattern is the base of the triangle forming above the 200-day Exponential Moving Average (200DEMA), a key long-term support indicator that signals strength in the underlying trend.
What truly caught my eye is the Relative Strength Index (RSI) performance of the index’s components. Using Indicator Digger, I analysed the RSI values across all 20 constituent stocks of the Nifty Pharma Index. Interestingly, 15 out of 20 stocks show a bullish RSI structure in the daily timeframe. This widespread strength beneath the surface suggests that there is accumulation happening across the sector — a potential precursor to a broader move.
