Given these observations, traders are advised to adopt a sell-on-rise approach or book profits at the current market price with a strict stop-loss limit of 48,675 on a closing basis. It is anticipated that the index will underperform for some time, and therefore, investors must exercise caution in their trading strategies.
On the charts, the first support level is expected around 48,000-47,800, underscoring the potential for further downside in the near term.
Investors are advised to maintain a strict stop-loss limit and closely monitor the index’s performance to minimise potential losses.
In conclusion, it is recommended that traders adopt a cautious approach while trading in the Nifty FMCG Index, given the overextended market conditions and the likelihood of a correction in the near term.
By implementing a sell-on-rise strategy or booking profits at the current market price and maintaining a strict stop-loss limit, investors can mitigate potential losses and capitalise on any minor price fluctuations that may occur.