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Nifty FMCG index could weaken below 51,120; Look to buy metals on dip

According to Ravi Nathani, an independent technical analyst, the bias for Nifty Metal Index is likely to remain bullish as long as it holds above 5,910.

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Ravi Nathani Mumbai

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Nifty FMCG Index

The Nifty FMCG Index is currently trading at a CMP (Current Market Price) of 51,598.60. The near-term trend for the index is observed to be down. However, for a fresh round of selling to occur, the index needs to break below the level of 51,120. Until this level is breached, the index is expected to trade within a narrow range, displaying a negative bias.

On the charts, support levels are anticipated around 50,800 and 50,000. These levels may act as potential price zones where buyers could enter the market or selling pressure may ease. The recommended trading strategy for traders would be to sell the index on rallies or near the resistance level, which is at 51,875 and 52,250. It is important to set a stop loss at 52,550 to manage risk in case the price moves in the desired direction.
 

Nifty Metal Index

The Nifty Metal Index is currently trading at a CMP (Current Market Price) of 6,127.65. The near-term trend for the index is observed to be bullish. Traders are advised to implement a buy-on-dips strategy, meaning they should look for buying opportunities when the price experiences temporary declines or pullbacks.

On the charts, support levels are expected around 6,035 and 5,945. These levels may act as price zones where buyers could enter the market, and selling pressure may ease. Resistance levels, on the other hand, are anticipated around 6,205 and 6,275. These levels may act as potential barriers or targets for the index's upward movement.

To manage risk, traders should set a strict stop loss at 5,910. This means that if the price falls below this level, it may indicate a change in the bullish trend, and traders may consider exiting their positions to limit potential losses.

It is worth noting that various near-term moving averages, including the 10, 20, 50, 60, and 100, are showing positive momentum for the index. This further supports the bullish outlook and reinforces the buy-on-dips strategy.

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

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First Published: Jun 28 2023 | 7:12 AM IST

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