Traders can adopt sell-on-rise strategy for FMCG, auto shares: Ravi Nathani

According to the technical analyst, he recommends traders to adopt sell side position for Nifty Metal index or wait for bearish correction to culminate before commencing accumulation at support levels

Nifty Metal
Last close: 5,757.35 

The Nifty Metal index is currently exhibiting a pernicious trend as indicated by persistent manifestation of a bearish pattern. Given this scenario, it would be judicious for traders to adopt a selling strategy with well-defined target prices, specifically 5,400 as a primary objective and 5,250 as a secondary one.

The technical indicators, such as the Moving Average Convergence Divergence (MACD), are manifesting negative signals along with near-term moving averages.

Consequently, by taking into consideration all these technical indicators and price action movements, it would be the most astute trading strategy to either maintain a position on the sell side or wait for the ongoing bearish correction to culminate before commencing accumulation at support levels.

Intraday No Trade Zone: 5,795 – 5,718

Expected Intraday Resistance: 5,829 – 5,881 - 6,036

Expected Intraday Support: 5,670 – 5,592 – 5,464

Nifty FMCG
Last close: 45,758.10

As indicated by its current market price, the Nifty FMCG index appears to be facing a period of turbulence, as evidenced by the emergence of a pattern of similar tops. This, thereby, could indicate a halt in the current bullish swing, and a significant probability that the index may experience a substantial downward correction.

On medium-term charts, the presence of a consolidation pattern signals that traders should look to book profits or initiate short positions around the resistance level of 46,350. Conversely, once the index drops below the support level of 43,675, traders should consider accumulating positions.

In light of these technical considerations and recent appearance of bearish price action, it would be advisable for traders to take a more cautious approach, perhaps book profits at the current market price and adopting a lighter stance with regard to bullish positions.

Intraday No Trade Zone: 45,960 – 45,550

Expected Intraday Resistance: 46,100 – 46,400 - 46,750

Expected Intraday Support: 45,450 – 45,125 – 44,630

Nifty Auto
Last close: 13,226.05 

The Nifty Auto index is currently facing a significant resistance level at 13,425, and a close above this level is necessary to sustain a fresh bullish trend.

The recent performance of the index, marked by yesterday's sharp decline, suggests that there has been profit booking by astute market participants, thereby, foretelling a potential underperformance in the near term.

Consequently, it would be judicious for traders to adopt a sell-on-rise strategy or to liquidate their current positions at the prevailing market price.

Additionally, it would be advisable to maintain a stringent stop-loss at 13,550 to mitigate downside risks. The target for the downside movement could be 12,700

Intraday No Trade Zone: 13,275 – 13,175  

Expected Intraday Resistance: 13,350 – 13,436 – 13,618

Expected Intraday Support: 13,136 – 13,050 – 12,900