[Premium] Trade Of The Week

After two years of a sideways move, Nifty FMCG has broken above its resistance and is ready for a leg up. We are looking at a stock from this sector to further its rally in the week ahead.

Marico has broken above its resistance after several attempts in the past. With the RSI moving towards the overbought zone and the price making a strong move above our risk management level of 395, we are looking at a medium term target of 465 from current levels. The 200-day moving average is sloping upwards, indicating the positive trend.

For a confirmation let's also take a look at Marico's performance relative to the Nifty 500. On a relative basis, the stock has bounced from a multi-year support and has started moving higher with the indicator staying away from the oversold region. The indicator moved up rather sharply as the price thrusted above its resistance.

Looking at the strength in Marico on both absolute and relative basis, we want to be long Marico above 395 for a target of 465, beyond which 605 is the next level to track.

Thanks for reading and please let us know if you have any questions.

And if you're a Premium Member, be sure to check out our other weekly post, "Three Charts For The Week Ahead."

Allstarcharts Team