Ravi Nathani is bullish on auto shares; bearish on metals, PSU banks

Nifty Metal Index

Bias: Bearish

Last close: 6,777.85

According to the latest market analysis, it appears that the prices of metals are expected to decrease significantly in the near future. This prediction is supported by the clear evidence present in the near-term charts, which demonstrate a pattern of distribution.

Furthermore, I anticipate that there will be significant resistance encountered at the 6,910 level, leading to the suggestion to adopt a strategy of "sell on the rise" in order to capitalize on this trend.

The target expected for this strategy is a decrease in prices to 6,525 and 6,350.

Intraday No Trade Zone: 6,755 - 6,800

Expected Intraday Resistance: 6,825 – 6,870 - 6,910

Expected Intraday Support: 6,736 – 6,700 – 6,636

Nifty Auto Index

Bias: Bullish

Last close: 12,797.05

A close examination of the near-term chart reveals that the index has been consolidating within a range of 12,900 to 12,675. However, this range is likely to be violated in the near future, with the index expected to outperform.

This prediction is supported by the positive bias shown by technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).

As a result, the best trading strategy for traders is to buy on dips with a strict stop loss of 12,675, with target prices expected to reach 13,050 - 13,160.

Intraday No Trade Zone: 12,760 – 12,830

Expected Intraday Resistance: 12,865 – 12,935 - 13,050

Expected Intraday Support: 12,715 – 12,649 – 12,490

Nifty PSU Bank Index

Bias: Bearish

Last close: 4,248.20

The NIFTY PSU Bank has been showing a pattern of consolidation in the near term, within a range of 4,375 to 4,160. However, it has been anticipated that this index will likely underperform in the near and short term.

This prediction is supported by various technical indicators such as the Relative Strength Index (RSI) which is showing a downward slope, and the Hull Moving Average (HMA) which suggests a bearish trend.

Therefore, taking into account all the above points, the best trading strategy for investors would be to adopt a "sell on rise" approach, with a stop loss of 4,375, and target prices expected to reach 3,650 - 3,450.

Intraday No Trade Zone: 4,236 – 4,260

Expected Intraday Resistance: 4,272 – 4,300 - 4,349

Expected Intraday Support: 4,210 – 4,175 – 4,100

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