Sell on Rise: Nifty FMCG and Nifty Auto ripe for profit booking

A decisive close above 16,880 is essential to trigger a renewed wave of bullish sentiment in both Nifty Auto and its constituents, said Ravi Nathani

Nifty FMCG Index: Sell on rise

The current market price for the Nifty FMCG Index is 52,305.75, and the near-term outlook suggests an imminent presence of selling pressure.

To navigate this scenario, the optimal trading strategy is to sell on upward movements, implementing a strict stop loss at 52700.

Support levels on the charts are projected around 52,180, 52,064, 51,900, and 51,780, offering potential points for a price rebound. Additionally, an oversold zone is anticipated between 51,690 and 51,436.

The recommended trading approach remains selling on rises, with a predetermined stop loss in place and the mentioned targets in mind.

It's essential to highlight that if the index enters the oversold zone, it may present an opportunity for swing traders and investors. During this phase, accumulating the index and its constituents could yield short-term gains in the form of a pullback.

In summary, a cautious and strategic approach is advised for traders in the Nifty FMCG Index. Selling on upward movements with a disciplined stop loss and considering potential support levels and the oversold zone provides a comprehensive trading strategy for navigating the current market conditions.

Nifty Auto Index: Sell on rise or at CMP

The current market price for the Nifty Auto Index is 16,788.90. In the near term, the index has concluded a very near formidable resistance level positioned at 16,880.

A decisive close above this level is essential to trigger a renewed wave of bullish sentiment in both the index and its constituents.

The recommended trading strategy involves selling on upward movements or at the current market price, implementing a strict stop loss at 16,880 on a closing basis.

Anticipated targets or support levels are projected at 16450, 16336, and 16200. These levels serve as potential areas for market participants to consider taking profits or reassessing their positions.

Given the proximity to the stiff resistance and the critical level of 16880, traders are advised to exercise caution and monitor market dynamics closely.

A break above the resistance level could usher in a bullish phase, while failure to breach it might indicate a continuation of the current trend.

In summary, a vigilant approach is warranted for traders engaging with the Nifty Auto Index. Aligning with the recommended trading strategy allows for a disciplined response to potential market movements while managing risks effectively.

Disclaimer: Ravi Nathani is an independent technical analyst. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. It should not be construed as a recommendation to purchase or sell such securities.