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Nifty FMCG Index - 102 Not Out

Apr 18, 2022

FMCG stocks have underperformed against the Nifty50 since the pandemic lows as ITC and HUL which collectively contribute over 50% to FMCG index have been hovering in the range.

But things appear to be changing on charts...

FMCG Weekly Chart

 

The FMCG index took support at the long-term trendline at 33,500-34,000 zone and reversed in the last few weeks.

The hurdle is placed at 38,500. If the index moves above those levels, the bulls will accelerate the momentum higher.

Another indicator is that the bullish range-shift on RSI strengthens the bullish trend.

FMCG/Nifty50 Ratio Chart

 

An underperformance of FMCG index ends after 102 weeks over Nifty50, the ratio is turning the tide in last few weeks.

The lower higher - lower low bearish trend ends on ratio chart indicating the trend is reversing for the FMCG index.

As FMCG index is trending bullish and ratio chart indicates the beginning of an outperformance over Nifty50, FMCG stocks should be on your watchlist.

At present, the Nifty FMCG index is trading at 38,260. Godrej Consumer and Jubilant FoodWorks are leading the pack while ITC is among the top losers.

If you're interested in being part of my charting journey as I share how to create wealth from the profitable trade setup, join my telegram channel - Fast Profits Daily.

You'll get access to the best trading ideas in the stock market.

To know more about how the Nifty and FMCG index are performing, please see the NSE Nifty Live Chart and Nifty FMCG long term chart.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

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