 "trading")
Nifty FMCG Index: Range-Bound with Clear Boundaries
The Nifty FMCG Index is displaying a range-bound behavior on the charts, characterised by robust resistance at 51,480 and essential support at 50,500.
A closing price above 51,480 would indicate a potential surge in buying activities, encouraging traders to consider selling near this mark. Conversely, when the index nears the crucial support level of 50,500, buying becomes a strategic move. The market's confined movement within this narrow range demands a cautious approach.
Traders are advised to make the most of price fluctuations within this established range while awaiting a definitive breakout.
A closing price above 51,480 would indicate a potential surge in buying activities, encouraging traders to consider selling near this mark. Conversely, when the index nears the crucial support level of 50,500, buying becomes a strategic move. The market's confined movement within this narrow range demands a cautious approach.
Traders are advised to make the most of price fluctuations within this established range while awaiting a definitive breakout.
Nifty Auto Index: Sideways Movement Indicates Patience is Key
In a similar vein, The Nifty Auto Index has been moving sideways for an extended period, establishing a range between 16,665 and 15,715.
Any trade occurring above or below this range would serve as a significant trigger, indicating a potential directional shift in the market. If the index breaches either boundary, the next expected support levels on the charts are 15,480 and 15,125, while the resistance levels are set at 16,880 and 17,140.
Given this scenario, the most prudent trading strategy is to exercise patience and wait for a breakout in either direction. Acting upon the violation of this established trend provides traders with a clear signal to enter the market.
Any trade occurring above or below this range would serve as a significant trigger, indicating a potential directional shift in the market. If the index breaches either boundary, the next expected support levels on the charts are 15,480 and 15,125, while the resistance levels are set at 16,880 and 17,140.
Given this scenario, the most prudent trading strategy is to exercise patience and wait for a breakout in either direction. Acting upon the violation of this established trend provides traders with a clear signal to enter the market.
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Disclaimer: Ravi Nathani is an independent technical analyst. He does not hold any positions in the Indices mentioned above and this is not an offer or solicitation for the purchase or sale of any security. It should not be construed as a recommendation to purchase or sell such securities.
