 "FMCG index may see pullback rally; Metal index ripe for profit booking")
Nifty FMCG Index
The Nifty FMCG Index, currently standing at 51,548.45, seems poised for a significant move on the charts following a recent correction. This impending shift could be characterised as a pullback in the near-term, offering traders some interesting possibilities.
In the short term, the index's first target range is expected to be between 52,000 and 52,175. If this initial milestone is achieved, the path opens up to a second target range between 52,665 and 53,150. For traders looking to capitalise on this potential upward movement, the best strategy is to consider accumulating the index and its constituents at lower levels or at the current market price (CMP). A prudent approach here involves placing a strict stop loss at 50,800 on a closing basis.
In the short term, the index's first target range is expected to be between 52,000 and 52,175. If this initial milestone is achieved, the path opens up to a second target range between 52,665 and 53,150. For traders looking to capitalise on this potential upward movement, the best strategy is to consider accumulating the index and its constituents at lower levels or at the current market price (CMP). A prudent approach here involves placing a strict stop loss at 50,800 on a closing basis.
Nifty Metal Index
Last week, we advised readers to consider buying the Nifty Metal Index, and over the past seven days, the index has indeed rallied and met its target. As of the current market price (CMP), it's prudent for traders to now think about securing their profits from this run. The reasoning behind this decision is that we could anticipate some profit booking in the near-term.
This means that investors may start taking profits off the table, which could lead to a temporary dip in the index's value. To shed some light on potential support levels in case of a dip, we can look to around 6,750, 6,675, and 6,575. These levels could serve as cushions during any pullback, providing some reassurance for traders.
Given this scenario, the best trading strategy to consider at the current juncture would be to sell when the index rises. It's a classic case of "buy low, sell high" and in the world of trading, securing profits is often a smart move.
This means that investors may start taking profits off the table, which could lead to a temporary dip in the index's value. To shed some light on potential support levels in case of a dip, we can look to around 6,750, 6,675, and 6,575. These levels could serve as cushions during any pullback, providing some reassurance for traders.
Given this scenario, the best trading strategy to consider at the current juncture would be to sell when the index rises. It's a classic case of "buy low, sell high" and in the world of trading, securing profits is often a smart move.
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Disclaimer: Ravi Nathani is an independent technical analyst. Views expressed are personal. 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.