Bias negative for Nifty Metal index; near-term support is at 6,125 level

There is a strong resistance around the 6,525-mark, which suggests that the Nifty Metal index may struggle to surpass this level in the near future

Nifty FMCG Index

The Nifty FMCG Index is currently trading at a CMP (Current Market Price) of 53,184.40. While the overall trend is bullish, the index is expected to trade within a range of 54,000 to 51,220 in the near-term. A close above or below this range would trigger a directional move in the index. The index has experienced a sharp rally in the short-term, pushing it in the overbought zone. This has resulted in a negative divergence, indicating a potential reversal or consolidation phase.

Risk-taking traders may look to sell on rallies or consider reducing their positions when the index approaches the upper range. On the other hand, traders who prefer to continue trading within the range can consider buying the index near support levels and selling near resistance levels. Until a clear breakout occurs, it is prudent to adhere to the range-bound trading strategy, and adjust positions accordingly.

Nifty Metal Index

The Nifty Metal Index, currently at a CMP (Current Market Price) of 6369.10, is displaying a distinct negative divergence on the Relative Strength Index (RSI) indicator on its near-term charts. There is anticipated strong resistance around the 6,525-mark, which suggests that the index may struggle to surpass this level in the near future. On the other hand, support levels are expected around 6,125 and 5,964, indicating potential areas where the index may find buying interest and potentially rebound. Considering this, the recommended trading strategy would be "'sell on rise' approach. It is advisable to set a stop loss at a close above 6.536. 


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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. He doesn't hold any positions in the indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security.