Divergent trend seen in Nifty FMCG, Metal and Realty; check key levels

According to Ravi Nathani, an independent technical analyst, the Nifty FMCG exudes a bullish short-term trend; while the Metal and Realty indices suggests a sell strategy.

Tactical Trading Strategies for FMCG, Realty, and Metal Indices

NIFTY FMCG INDEX

Last close: 53,646.20

The Nifty FMCG Index currently exudes a bullish short-term trend, yet an anticipated correction in the near term signals a potential pullback on the uptrend chart. 

Traders eyeing swing opportunities are strategically positioned to capitalize on this expected correction. Strong support levels on charts are identified around 52,930, prompting a recommended trading strategy for swing traders to accumulate positions between 53,100 and 52,930.

This tactical move aligns with the objective of securing positions for a quick technical bounce during the impending pullback within the overarching uptrend.

 

Nifty Realty Index

Last close: 876.05

Contrasting the FMCG scenario, the Nifty Realty Index suggests a sell strategy, either at the current market price (CMP) or on upward movements. Implementing a strict stop loss of 900 on a closing basis is advised, mitigating potential risks. Critical support levels are anticipated around 810, 790, and 760.

The strategic approach involves anticipating selling pressure, guided by negative divergence on technical indicators. By adhering to a carefully planned exit strategy and managing risk through the specified stop loss, traders can adeptly navigate the challenges posed by the realty sector.

Nifty Metal Index

Last close: 8,221.85

For the Nifty Metal Index, currently standing at 8,221.85, a sell strategy is recommended at the CMP or on upward movements, coupled with a strict stop loss of 8,350 on a closing basis. The first support level is projected around 8,010, followed by 7,910 and 7,810.

Recognizing the negative bias on daily charts, traders are encouraged to execute a proactive trading strategy, selling positions, and strategically booking profits. This approach ensures that traders are well-positioned to capitalize on the identified negative bias while managing potential downsides.

In conclusion, the tactical trading strategies outlined for the Nifty FMCG, Realty, and Metal Indices encapsulate a dynamic approach to market opportunities and risks. By aligning specific entry and exit points with identified support and resistance levels, traders can navigate these diverse sectors with precision.

Furthermore, the emphasis on risk management, including the implementation of strict stop losses, underscores the importance of discipline and adaptability in the pursuit of optimal trading outcomes.

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