Ravi Nathani recommends placing bearish trading bets on Nifty Metal index

According to the technical analyst, the Nifty FMCG index is gyrating in a 1,000-point range, a breakout from the same could trigger a fresh trend.

Nifty FMCG Index

Last close: 44,456.90 

The Nifty FMCG index, which represents the performance of Fast Moving Consumer Goods companies listed on the National Stock Exchange of India, is currently at 44,456.90.

This suggests that the overall performance of these companies is stable and not showing significant growth or decline. The index is experiencing a phase of consolidation, meaning that it is not making large moves in either direction and is instead staying within a defined range.

The defined range is 44,750 to 43,750, which means that the index is fluctuating within this 1,000-point range. Traders and investors should pay close attention to these levels because a break outside of this range could signal a change in trend.

If the index moves above 44,750, it could indicate bullish sentiment and a potential rise in the future.

On the other hand, if it moves below 43,750, it could indicate bearish sentiment and a potential drop in the future.

Therefore, it is important for traders and investors to monitor these levels closely to stay informed about the potential direction of the Nifty FMCG index in the near and short term.

No Trade Zone: 44,236 – 44,675  

Expected Intraday Resistance: 44,810 – 45,175 - 46,150

Expected Intraday Support: 44,064 – 43,800 – 43,300

Nifty Auto Index

Last close: 13,323.90

The Nifty Auto Index is currently fluctuating at a value of 13,323.90. As previously documented, the index has demonstrated a bullish inclination, having achieved its set objectives.

Currently, the index is transacting at a level surpassing resistance points, and the subsequent targets, deemed as overbought territories, lie between the boundaries of 13,600 and 14,000.

When the index reaches this range, traders may ponder realizing profits and liquidating their holdings.

No Trade Zone: 13,264 – 13,381  

Expected Intraday Resistance: 13,420 – 13,525 - 13,750

Expected Intraday Support: 13,165 – 13,050 – 12,825

Nifty Metal Index

Last close: 6,468.40

The Nifty Metal Index is currently trading at 6,468.40. Despite the recent upward movement, the short-term trend remains bearish. This current rally should be considered a counter-trend pullback, and formidable resistance is anticipated to exist between the levels of 6,650 and 6,770.

Given this scenario, it is advisable that traders adopt a bearish stance and initiate short positions within this range with a view to attaining targets of 6,010 and 5,800. 

This strategy is predicated upon the expectation of the index encountering resistance at the aforementioned levels and subsequently experiencing downward momentum.

In conclusion, the Nifty Metal Index is currently exhibiting bearish undertones in the short term, with a pullback in progress that is expected to meet resistance at 6,650 - 6,770.

Traders are advised to adopt a short position with defined targets of 6010 and 5800.

No Trade Zone: 6,430 – 6,506  

Expected Intraday Resistance: 6,536 – 6,605 - 6,750

Expected Intraday Support: 6,380 – 6,300 – 6,175

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