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Nifty FMCG Index: Embracing Opportunities Buy on dips
The Nifty FMCG Index stands resilient at 51,803.95, a testament to its inherent strength in the market.
In the near term, a promising trend unfolds as the index adeptly rebounds from the critical support levels at 51,100. This resurgence sets the stage for potential gains. Immediate challenges lie at the 51,800 mark, with a further hurdle at 52,100. However, the real game-changer manifests beyond 52,400, a point where the index steps into the overbought territory.
Vigilant traders will find valuable cues from pivotal technical indicators, notably the Pivot levels' (R1) resistance at 52,395 and the Bollinger's upper band at 52,450.
Considering these intricacies, the optimal trading strategy crystallizes: it's prudent to buy the index and its constituents during market dips. This strategic move, when coupled with a discerning stoploss set at 51,100 on a closing basis, ensures a safety net. The ambitious targets of 51,800, 52,100, and the pivotal 52,400 become the focal points, promising potential gains in this nuanced market landscape.
Nifty Auto Index: Navigating Consolidation for Smart Trades
The Nifty Auto Index stands at 16,028.70, presenting a promising yet nuanced market scenario. In the short term, a bullish trend prevails, but the near future hints at a subtle consolidation phase within the 16,200 - 15,700 range.
This consolidation acts as a testing ground for traders, offering both challenges and opportunities. Risky traders might find potential in buying near support levels and selling close to resistance points within this range.
Key resistance markers loom at 16,300, 16,450, and 16,540, while crucial supports stand at 15,500 and 15,250. Until a decisive move occurs, astute traders are better served by cautious, range-bound
strategies. Technical indicators, including MACD, RSI, and Bollinger bands, reflect this market indecision, showcasing a flat trend. In such times, patience becomes the virtue of wise traders. Waiting for a clear breakout, a move that pierces the confines of this consolidation range, is a prudent approach.
(Ravi Nathani is an independent technical analyst. Views expressed are personal).
