Charts show range-bound pattern for Nifty FMCG, Auto indices: Ravi Nathani

According to the technical analyst, charts suggest range-bound pattern for Nifty FMCG, Nifty Metal, and Nifty Auto indices in the near-term

Nifty FMCG
Last close: 45,585.55 (Range Bound)

As the index trades at 45,585.55, it exhibits a pattern that is seemingly range-bound in the near-term on the charts, with a triangulated pattern.

The upper range limit rests at 45,785, while the lower range limit is at 45,425. Any close above or below these limits would generate a trigger in the respective direction.

If the index breaches the upper range limit, we may anticipate resistance at around 46,050. Conversely, if it slips beneath the lower range limit, support is predicted around 45,225 and 44,850.

Consequently, it would be prudent for traders to adopt a strategy of observance and discernment, and trade whichever side the index breaches the trend - whether up or down. Notably, a clear breakout or breakdown from the current range would facilitate a more lucid insight into the market's trend.

Thus, traders should carefully monitor the index and its levels mentioned above before trading.

Nifty Metal
Last close: 5,749.75 (Range Bound)

As the index trades around 5,749.75, the index is seen trading in a triangular pattern at lower levels since the last fortnight, following a sharp correction on charts.

It is noteworthy that such consolidation on charts would be a watchful type of trade, as any day if the index violates the lower side of the range, a sharp sell-off could be expected in the near and short term.

The range of the triangle pattern lies at 5,650 on the lower side and 5,910 on the higher side. In case the index violates the upper side, we can expect resistance around 6,100 and 6,400, while on the lower side, if the index corrects, the next support is expected to be around 5,210 and 4,750.

Thus, traders must be vigilant and attentive while taking trading decisions, keeping in mind the potential risks and rewards along with trading levels of breakout and breakdown.

Nifty Auto
Last close: 13,148.75 (Range Bound)

The current chart pattern of the Nifty Auto index reveals that the near-term trend is range-bound, marked by flat consolidation on the hourly chart.

The range of this consolidation spans from 13,300 on the higher side to 13,000 on the lower side, and any trade and close above or below this range would add trigger in the respective direction.

If the index trades above 13,300, it could rise to 13,680, while a trade below 13,000 may see the next support around 12,675.

Thus, the best trading strategy for traders would be to adopt a wait-and-watch approach until we observe a violation of the range on either side and then base their trading strategy accordingly.

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