Both indices are showing Fibonacci-driven breakout patterns, awaiting confirmation, according to the analyst.
For investors who may have missed the stellar rally in the auto sector, the markets might be offering opportunities in two other sectors now.
According to SEBI-registered analyst Financial Sarthis, technical charts suggest that FMCG and PSU banks could be the next playground for bulls, as these indices are showing Fibonacci retracement and breakout patterns.
Both the indices traded in the green in early trade on Wednesday.
Chart Watch: Nifty FMCG Index
The analyst spotted sideways consolidation with a Fibonnaci retracement play in the Nifty FMCG index. They identified support at 54,750, 53,680, and resistance at 55,820, which aligns with the 0.618 retracement level.
Financial Sarthis noted that the Nifty FMCG index closed above the 61.8% level on Tuesday, but confirmation through a follow-up candle on Wednesday will be crucial to determine its next direction.
Chart Watch: Nifty PSU Bank Index
The analyst also flagged a Fibonacci breakout retest setup in the Nifty PSU Bank Index. Support is identified at 7,040 and 6,976, while resistance is seen at 7,300 and 7,452, A sustained close above 7,102, which aligns with the 0.618 retracement level, suggests that bulls may have gained control, but Wednesday’s price action will confirm this bias.
Hence, Nifty FMCG and Nifty PSU Bank could emerge as the next leaders of the market rally, said Financial Sarthis.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<