Nifty Metal looks weak; sell with stop loss at 6,564, suggests chart

Meanwhile, the Nifty FMCG index is expected to consolidate in the range of 53,971 and 52,484, says Ravi Nathani, an independent technical analyst.

Nifty FMCG Index

The Nifty FMCG Index is currently trading at 53,340.65. In the near term, it is anticipated that the index will experience consolidation between the range of 53,971 and 52,484. This means that the price is expected to trade within this range without a clear trend.

However, if the index breaks out above or below this range, it could serve as a trigger for further movement in that particular direction. Support levels are crucial price levels where buying pressure is anticipated to emerge, potentially halting a downward trend and causing prices to bounce back.

The identified support levels for the Nifty FMCG Index are 51,760, 51,000, and 49,780. Traders and investors will closely monitor these levels as potential entry or exit points for their positions.

Conversely, resistance levels are significant price levels where selling pressure is expected to increase, potentially leading to a reversal or a slowdown in the upward momentum of the index. The resistance levels for the Nifty FMCG Index are observed at 54,950 and 56,000.

Market participants will keep a close eye on these levels to assess the strength of the uptrend and make informed trading decisions accordingly. One potential trading strategy in this scenario would be to wait for a breakout above or below the consolidation range before entering a position.

For more risk-tolerant traders, they may consider selling near the upper range of the consolidation and buying near the lower range, expecting a reversal within the range.

Nifty Metal Index

The Nifty Metal Index is currently trading at 6,446.75. Based on the near-term charts, it indicates a downward trend. In this scenario, the suggested trading strategy would be to sell on any rise in prices, while maintaining a strict stop loss of 6,564 on a closing basis.

This means that if the price closes above 6,564, it would be advisable to exit the sell position to manage the risk. For traders implementing this strategy, the support levels to consider as potential targets or areas where buying pressure may emerge are 6,200 and 6,136. These levels indicate price points where the downward trend could potentially pause or reverse, leading to a bounce in prices.

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