 "Nifty IT index looks bullish, can rally up to 7%; FMCG may consolidate")
Nifty FMCG Index: Navigating Consolidation with a Watchful Eye
The Nifty FMCG Index stands at 52,141.65, following a notable correction phase on the charts. The current scenario hints at an imminent consolidation phase.
In the near term, the projected consolidation range lies between 52,300 and 51,200. Any movement above or below this range would be deemed a breakout, signaling a clear trend direction. Should the index breach the upper range, it could potentially face resistance around 52,675, 53,100, and 53,600. On the flip side, breaking the lower range might lead to the next support levels of 50,300 and 49,200.
In terms of trading strategy, prudence dictates awaiting a well-defined direction before making trading moves.
In summary, the Nifty FMCG Index's recent correction paves the way for a consolidation phase. With the projected range between 52,300 and 51,200, traders are advised to closely monitor for any breakout indicating a clear trend. Whether it's an upward surge or downward dip, being vigilant and patient is key to a successful trading strategy.
Nifty IT Index: Riding the Bullish Wave
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The Nifty IT Index currently stands at 30,902.40, showcasing a promising near-term bullish trend on the charts. In the immediate future, a minor resistance zone is anticipated within 31,200 to 31,400. A successful breach and closure above this range could spark a fresh wave of buying enthusiasm.
If this scenario unfolds, traders can set their sights on targets at 31,650, 32,225, and 33,080. It's crucial to note that a prudent stoploss strategy is advised. Placing a stoploss just below 30,500 on a closing basis is recommended. This safeguard ensures that if the index closes below 30,500, it may find its subsequent support levels around 30,100, 29,800, and 29,575.
For traders aiming to capitalize on this upward trend, a sound approach involves either buying at the current market price or purchasing during market dips. While adhering to the recommended stoploss, traders can consider booking profits around the indicated resistance levels.
In essence, the Nifty IT Index at 30,902.40 signals a promising bullish trend in the near term. Keeping a watchful eye on the resistance range of 31,200 to 31,400 and implementing the suggested stoploss strategy could position traders to make informed and potentially profitable trading decisions.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).