Given the recent consolidation in the market, select key indicators are flashing signs of caution, hence the benchmark indices are likely to be volatile going ahead.
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.
As per Ravi Nathani, adopting a buy-low, sell-high strategy for Nifty FMCG within the established range is the most prudent course of action
As per Ravi Nathani, the Nifty Private Bank index is poised to encounter a stronghold of support at 22,200, according to chart analysis.
Buy the Bank Nifty index either at the current market price of 43,600 or seize the opportunity below this threshold, says Ravi Nathani
Whereas, one needs to be patience and await for a clear breakout on the Nifty Private Bank Index, suggests Ravi Nathani, an independent technical analyst.
According to Ravi Nathani, an independent technical analyst, Nifty Financial index can be bought with a stop at 19,570.
The prevailing bias suggests a positive outlook, emphasizing a buy-on-dips strategy for Nifty Auto and its components, said Ravi Nathani
According to Ravi Nathani, traders eyeing Nifty FMCG index might find value in purchasing when the index nears the lower limit of its current range
According to Ravi Nathani, initiating trades before the breakout occurs is laden with risk, traders should act once the breakout signals the market's chosen direction
According to Ravi Nathani, caution is paramount as the Nifty index teeters precariously near a significant support level at 19,600
Buy Nifty 19500 Put option and simultaneously Sell 19300 Put of the 12-October expiry, recommends Nandish Shah, Sr. derivatives & technical research analyst of HDFC Securities.
According to Ravi Nathani, an independent technical analyst, the Nifty FMCG index seems range-bound, while one can adopt a 'sell on rise' strategy for the PSU Bank index.
On Wednesday in intra-day deals, the S&P BSE Sensex was down 660 points at 66,935, while the Nifty50 had shed a per cent or 190 points to 19,944.
Ravi Nathani, an independent technical analyst, says that despite the need for caution, the market remains generally bullish.
In a past instance, the Nifty PSU Bank corrected over 23 per cent in the following two months after the index entered overbought zone on the monthly scale.
According to Ravi Nathani, an independent technical analyst, one should await for buying opportunities in Nifty Metal, whereas in case of Nifty Energy one can look for opportunites to sell.
According to Ravi Nathani, an independent technical analyst, the Nifty FMCG index may trade sideways, while the Nifty PSU Bank index is expected to trade with a positive bias.
According to Ravi Nathani, an independent technical analyst, the Nifty Financial Services index could potentially rally to 20,975, while the Nifty PSU Bank index can gallop to 5,055.
While the Nifty Metal index seems headed towards its crucial resistance zone, select stocks such as Hindalco, Nalco and SAIL still have the potential to rally up to 15 per cent, charts suggest.