Nifty IT index likely to consolidate, FMCG looks weak, says Ravi Nathani

Nifty

Last close: 17,859.45

The Nifty ended very close to the previous support of 17,775, trade below this level would probably attract more selling pressure whereas the next support level would be 17,649 & 17,470 which is also 200 EMA on the daily charts.

Side-lined investors who were waiting for markets to come down could start accumulating the large-cap names between 17,649 – 17,470 because on daily charts there will be a possibility that a positive divergence could be witnessed on leading technical indicators.

Expected Intraday Resistance: 17,930 / 18,025 / 18,125

Expected Intraday Support: 17,800 / 17,736 / 17,649

Bank Nifty

Last close: 42,188.80

The near term trend is still down, as mentioned in my last articles, however, if someone still wants to be on the long side then the last hope for the index is 41,800 close below this level will bring 41,100 / 40,400.

Traders and investors shall watch this level very closely for all their long positions. Swing traders can take the opportunity to accumulate between 41,100 – 40,400 as trade between this range will be treated as an oversold zone and a bounce back could be expected in the near term.

Expected Intraday Resistance: 42,380 / 42,600 / 43,000

Expected Intraday Support: 42,000/ 41,880 / 41,800

NIFTY IT

Last close: 27,956.45

Medium Term Charts: The index is expected to consolidate between 30,600 – 26,300, current correction from the highs indicates 27,400 as strong support for the near term, where opportunist traders could accumulate this index and its constituents for the quick bounce of 8 – 10 per cent.

Expected Intraday Resistance: 28,110 / 28,200 / 28,525 / 28,720

Expected Intraday Support: 27,810/ 27,736 / 27,550 / 27,400

NIFTY FMCG

Last close: 44,412.85

Short term: Range bound on charts 44,850 – 43,650, currently index is very close to its highest range therefore one must take opportunities to book profits on the rise.

On medium-term charts, index looks weak whereas a close below the above-mentioned lower range will create panic / free fall whereas its next support would be around 42,100; therefore it is advisable to keep a watch on the above-mentioned range closely, as a close above 44,850 will bring 45,760 as a stiff resistance.

Expected Intraday Resistance: 44,545 / 44,700 / 44,870

Expected Intraday Support: 44,300/ 44,240 / 44,010

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