The Large-Cap indices continue to churn near the highs as Mid and Small-Cap stocks play catchup. Sector leadership remains clear, but we’re now beginning to see signs that a former leader turned laggards may start heating up again.
Let’s take a look.
Here’s the Nifty Fast Moving Consumer Goods Index attempting to break back above 31,000 resistance as prices reverse from their lows and momentum diverges positively. If prices can break back above that resistance then this long-term uptrend could accelerate and target 39,000 over the course of 2020.
Click on chart to enlarge view.
Here’s the Equally-Weighted Fast Moving Consumer Goods Index also reversing higher as momentum diverges. If the sector is going to accelerate higher, this would be a logical level for it to happen at.
The action we’re seeing in the sector’s individual components is what makes this thesis really compelling and is the more attractive way to express this thesis in the market.
Here’s Tata Global break to new all-time highs. As long as prices are above 315 we’re staying long with a target near 450.
Bata India Ltd. has held up well over the last few months and is now pressing up against all-time highs. We want to be buying a breakout above 1,800, with a target near 2,500.