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Nifty FMCG
Last close: 52,814.80
Last close: 52,814.80
The overall trend on the charts is bullish, indicating a positive outlook for the index. However, daily charts hint towards a negative divergence on the Relative Strength Index (RSI). This suggests that the index may face selling pressure on upward movements.
On the charts, there is a strong resistance zone expected between 52,900 and 53,400. Traders should be cautious when the index approaches this range as it may encounter resistance and potential selling pressure.
On the other hand, support levels on the charts are anticipated around 52,000, 51,325, and 50,700. These levels provide potential buying opportunities, as the index may find support and reverse its downward movements.
The recommended trading strategy in this scenario would be to book profits on any upward movement or when the index reaches resistance levels. Traders can take advantage of the positive momentum and secure their gains.
It is advisable to wait for some corrections or pullbacks on the daily charts before considering new bullish positions. Buying near support levels can be a favorable approach as it aligns with the overall bullish trends.
On the charts, there is a strong resistance zone expected between 52,900 and 53,400. Traders should be cautious when the index approaches this range as it may encounter resistance and potential selling pressure.
On the other hand, support levels on the charts are anticipated around 52,000, 51,325, and 50,700. These levels provide potential buying opportunities, as the index may find support and reverse its downward movements.
The recommended trading strategy in this scenario would be to book profits on any upward movement or when the index reaches resistance levels. Traders can take advantage of the positive momentum and secure their gains.
It is advisable to wait for some corrections or pullbacks on the daily charts before considering new bullish positions. Buying near support levels can be a favorable approach as it aligns with the overall bullish trends.
Nifty Auto
Last close: 15,035.05
Last close: 15,035.05
Overall, charts suggest an upward momentum, signalling a positive outlook for Nifty Auto index. However, a small correction is expected in the near term, which may cause the index to underperform. Considering this, it is advisable to adopt a sell-on-rise strategy with a strict stop loss of 15,300, based on the current market price. This means that if the index moves higher and reaches levels close to 15,300, it would be a suitable opportunity to sell.
On the charts, support levels are anticipated around 14,825, 14,625, and 14,360. These levels represent potential areas where the index may find support and reverse its downward movements.
Traders should monitor the price action closely and consider these support levels as potential buying opportunities or exit points for short positions.
Additionally, it is worth noting that daily charts show a negative divergence is observed on the Relative Strength Index (RSI). This divergence indicates a potential weakening of the upward momentum and suggests that selling pressure could increase on upward movements.
Given these factors, the recommended trading strategy would be to sell-on-rally and avoid establishing bullish positions until the index reaches the support levels mentioned above.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
On the charts, support levels are anticipated around 14,825, 14,625, and 14,360. These levels represent potential areas where the index may find support and reverse its downward movements.
Traders should monitor the price action closely and consider these support levels as potential buying opportunities or exit points for short positions.
Additionally, it is worth noting that daily charts show a negative divergence is observed on the Relative Strength Index (RSI). This divergence indicates a potential weakening of the upward momentum and suggests that selling pressure could increase on upward movements.
Given these factors, the recommended trading strategy would be to sell-on-rally and avoid establishing bullish positions until the index reaches the support levels mentioned above.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
