Nifty FMCG broke above its long-term resistance last week, moving out of a more than two-year consolidation. While the selected-few large caps from the sector have performed well with the rest of the market in the run up so far, we believe that the rest of the sector is on its way to play catch up.
Let’s take a look at the sector and see what the charts have to say.
Nifty FMCG has broken above its resistance and seems poised to perform well going forward. With the 200-DMA sloping upwards and the RSI in the overbought territory, bullish momentum can be seen in this sector.
On a relative basis to Nifty 100, the Nifty FMCG sector has begun to bounce back from multi-year support. So if ever there was a time for FMCG to rally, this is it!
Now let’s take a look at some actionable ideas at current levels that look attractive on the long side for the next few weeks and months.
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