Charts show bullish trend for Nifty Auto, adopt buy-on-dips: Ravi Nathani

Based on the technical analysis of the Nifty Auto index using near-term charts, it is anticipated that the index may continue its upward trend in the near to short term, said the technical analyst

Nifty Auto
Last close: 12,742.05

The near-term charts suggest that the Nifty Auto index is exhibiting an upward trend. The resistance level is expected to be around 12,825 - 13,065, supported by the Ichimoku Cloud indicator, which indicates a potential bullish trend in the near-to-short term.

Technical indicators such as the Moving Average Convergence Divergence (MACD) display positive signals, thereby, indicating potential bullish momentum in the near term.

Moreover, the Exponential Moving Average (EMA) 21 is changing from a steep downward trend to a flat pattern, further supporting the bullish trend.

Therefore, the best trading strategy for traders in the near term would be to buy the index and its constituents at dips. This strategy takes advantage of the positive signals from MACD and EMA 21, along with the expected resistance level on charts.

Conclusion: Based on the technical analysis of the Nifty Auto index using near-term charts, it is anticipated that the index may continue its upward trend in the near to short term. Technical indicators such as MACD and EMA 21 provide positive signals, suggesting a potential bullish trend.

The best trading strategy for traders would be to buy the index and its constituents at dips, taking advantage of the expected resistance level on charts. However, it is important to monitor the price action and adjust the trading strategy accordingly.

Nifty Metal
Last close: 5,668.25

In the near and short-term charts, it is observed that the Nifty Metal index is currently expected to consolidate within a range of 5,800 to 5,200. A trade and close above or below this range would trigger a directional movement. Until the index is arrested within this range, the best trading strategy for traders would be to sell near resistance and buy near support.

This range-bound consolidation indicates a period of indecision and uncertainty in the market, with no clear trend emerging. Therefore, it is important for traders to closely monitor the price action and wait for a decisive breakout above or below the range before formulating a trading strategy.

Conclusion: Based on the technical analysis of the Nifty Metal index using near and short-term charts, it is anticipated that the index may continue to consolidate within a range of 5,800 to 5,200 in the near and short term.

The best trading strategy for traders during this period would be to sell near resistance and buy near support, taking advantage of the range-bound movement.

However, traders should exercise caution and closely monitor the price action for any decisive breakout above or below the range, which could signal a potential directional movement.

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