Nifty FMCG index expected to turn bullish on clearing the hurdle at 52,600

According to Ravi Nathani, an independent technical analyst, the Nifty FMCG index faces a formidable hurdle between 52,380 - 52,600; a breakout above this range can trigger a fresh wave of buying.

NIFTY FMCG Index Analysis: Charting a Strategic Path

The current market price for the NIFTY FMCG Index stands at 52,130.00. A close examination of the near-term charts reveals a challenging yet promising scenario for traders and investors alike. 

In the immediate future, the index faces a formidable hurdle between 52,380 and 52,600, representing a stiff resistance zone. Breaking beyond this range is crucial, as it could trigger a fresh wave of buying, propelling the index towards new heights at 52,850, 53,415, and 54,236.

The trend, for the time being, is upward. However, it's essential to note that the index is teetering very close to the anticipated resistance levels on the charts. A decisive close above the defined range of 52,380 - 52,600 is pivotal for the index to outperform. 

To maintain this bullish stance, a strict stop loss below 51,800 on a closing basis is prudent. If the index not only trades but also closes below 51,800, it might indicate underperformance, with support expected around 51,400, 51,215, and 50,950. 

For traders, the optimal strategy is to buy only if the index surpasses 52,600 and to sell only if it dips below 51,800. Within this defined range, a cautious approach for safe traders involves waiting for a breakout. On the other hand, risk-tolerant traders could consider selling near resistance and buying near support. Setting stop losses at the breakout levels mentioned above helps manage risks effectively. 

By adopting this strategic approach, traders can navigate the challenging terrain of the FMCG market, making well-informed decisions aligned with prevailing market dynamics and technical indicators. This strategic vigilance ensures that traders capitalize on potential opportunities while mitigating risks in an ever-changing market landscape.

Nifty Metal Index Analysis Sell on rise

The current market price for the Nifty Metal Index is 6,576.85. A prudent trading strategy in this scenario involves selling the index on any upward movements. To manage risks effectively, it is advisable to set a strict stop loss at 6,664. 

This precautionary measure acts as a safety net, limiting potential losses. The anticipated targets for this trade are set at 6,480, 6,410, and 6,380. By aligning with this strategy, traders can position themselves strategically, capitalizing on potential downward movements in the index.

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