Nifty FMCG looks weak; Metal index likely to face resistance above 6,600

According to Ravi Nathani, an independent technical analyst, the Nifty FMCG index has near support at 51,750, below which the index can slide to 50,990.

Nifty FMCG index signals downtrend; Traders urged to watch support levels

The Nifty FMCG index is currently trading at a CMP (Current Market Price) of 52,315.95, indicating a downtrend in the near term. Traders should closely monitor the index's movement as a fresh round of selling is anticipated once the index breaks below the pivotal level for the month, which stands at 51,750.

In the event of a trade below 51,750, the index is likely to find the next support at 50,990. This support level is considered the best accumulation price for the index and its constituents, presenting an opportunity for traders to enter long positions at favorable prices.

As the near term trend remains downward, the recommended trading strategy would be to refrain from buying and stay in cash until the index approaches the support level at 50,990. This cautious approach will allow traders to avoid potential losses and capitalize on opportunities when the price aligns with the identified support.

Investors are advised to remain vigilant and closely monitor the index's movement, as it may signal market shifts. Staying in cash until an appropriate support level is reached will enable traders to make informed decisions and optimize trading strategies in the Nifty FMCG index.

Nifty Metal index faces resistance amid bullish trend; Traders advised to exercise caution

The Nifty Metal index is currently trading at a CMP (Current Market Price) of 6,585.20, displaying a bullish trend in the near term. However, traders should be cautious as the index is expected to encounter strong resistance within the range of 6,600 to 6,660.

Technical indicators, particularly the Stochastic, indicate an overbought zone, which may lead to selling pressure on price rises. Traders are advised to take note of the critical level at 6550, as a close below this level could trigger a correction in the near term.

The next support levels are projected at 6,525, 6,480, and 6,400. To optimize trading strategies, it is recommended to book profits when the index rises and maintain a cash position for a period.

Waiting for a potential pullback towards the mentioned support levels provides a favorable opportunity for traders to re-enter the market. While the trend remains bullish, being aware of the resistance and support levels will empower traders to make well-informed decisions amidst market fluctuations.

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