Nifty Metal index looks weak on charts; Oil & Gas seems range-bound

Ravi Nathani, an independent technical analyst, recommends initiating short positions on rise on the Nifty metal index with a stop at 6,550.

Nifty Metal Index Sell on rise

The current market scenario for the Nifty Metal Index reveals a challenging landscape. Presently, the index stands at 6359.90, experiencing a noticeable downtrend in the near term as indicated by recent charts. Key support levels are expected to emerge around 6165 and 5890, underlining the significance of these price points in the current market dynamics. 

Adding to the cautionary signals, technical indicators such as the Relative Strength Index (RSI) are reflecting a bearish momentum in the market. These observations necessitate a prudent approach for traders navigating this sector.

Given this context, the most advisable trading strategy is to initiate selling positions when the index exhibits upward movements. Implementing a strict stop loss at 6550 on a closing basis is vital. This precautionary measure acts as a safeguard, minimizing potential losses in the event of unforeseen market fluctuations. 

Additionally, traders should pay close attention to the anticipated targets and support levels highlighted on the daily charts, specifically at 6165 and 5890. These levels serve as crucial reference points for making informed trading decisions. Aligning trades with these levels allows traders to optimize their potential gains while effectively managing the risks associated with the prevailing bearish momentum in the market. 

By adhering to this strategic approach, traders can navigate the volatile market environment with a calculated and informed perspective. Timely decisions, coupled with a keen awareness of support and resistance levels, position traders favorably, enabling them to make precise moves in response to the ever-changing market conditions.

Nifty Oil & Gas Index Range Bound on charts

The current market price for the Nifty Oil & Gas Index is 7626.30. Anticipated in the near term is a range-bound trend as per daily charts, with expected boundaries at 7725 and 7425. A close above or below this range is poised to trigger significant movements in the market. 

Should the index fall below the lower boundary, the next support levels are projected at 7240 and 7035. Conversely, a breach of the upper boundary could lead to resistance levels around 7810, 7900, and 8030. For cautious traders, the best strategy is to wait for a breakout, observing the market's behavior for a decisive move. 

On the other hand, risk-tolerant traders might consider selling near the upper range and buying when the index approaches the lower range. To manage risk effectively, a strict stop loss of 1% from the committed levels is advisable. 

This approach allows traders to adapt to varying risk tolerances while maximizing opportunities within the established range. By aligning their strategies with these key levels, traders can make informed decisions in response to the market's movements.