ITC can double from current levels; HUL, Marico may hit new highs

The current chart formation is akin to 2011, provided ITC ends August on a positive note. Post which, the stock can potentially double from current levels.

Indian conglomerate, cigarettes-to-hotels major, ITC rallied to a fresh over three-year high in intra-day trades on Tuesday after the company delivered stellar Q1 results. The stock has rallied 45 per cent on a year-till-date basis. READ MORE  

The stock has delivered positive returns since February 2022 by advancing higher on monthly scale, compared to benchmark indices, the BSE Sensex and Nifty that clocked negative returns, and even touched new-52-weeks during the period. 

If ITC succeeds to close on a positive note in August, then the chart formation would be similar to that of 2011. Following which, the stock price had doubled in a three-and-half year period with keen market participation.

Going ahead, here's an outlook on the FMCG stocks on the basis of technical charts. 

NIFTY FMCG

Likely target: 44,000

Upside potential:  3%

There is a flawless “Inverse Head and Shoulder” breakout on the weekly chart of the Nifty FMCG index. This exhibits medium-term bullishness and a robust upward bias. In addition, the index also has a “Golden Cross” formation claiming a new historic peak, initiating more upside in upcoming sessions. The price action is signalling an immediate reach to 44,000-mark, having 42,000 – 41,500 as support range. CLICK HERE FOR THE CHART

I T C Ltd (ITC)

Likely target: Rs 350

Upside potential: 12%

Shares of ITC hit a new three-year high on Tuesday, forming simultaneous support base and conquering major hurdles, shows the daily chart. Now onwards, Rs 277 stays as the crucial support and until the stock protects this mark, the uptrend would continue to scale higher highs. The next resistance for the stock is seen around Rs 350 level. And the medium-term outlook is pointing at a long-term bull run that may see unprecedented higher levels. CLICK HERE FOR THE CHART

Hindustan Unilever Ltd (HINDUNILVR)

Outlook:  Set eyes on new historic peak

Hindustan Unilever broke out of the “Golden Cross” pattern indicating a positive bias for days ahead. The immediate support for the stock is seen at Rs 2,400 and the pattern highlights intent to claim a new historic peak, crossing earlier high of Rs 2,811.  The pattern is very well supported by the Moving Average Convergence Divergence (MACD), which scaled the zero line decisively, shows the daily chart. CLICK HERE FOR THE CHART

Dabur India Ltd (DABUR)

Likely target:  Rs 635

Upside potential: 10%

A trendline breakout and a formation similar to “Double Bottom” have initiated a bullish trigger for the stock, shows the daily chart. Furthermore, crossing the most critical average, 200-day moving average (DMA) set at Rs 553 has further confirmed the positive trend. The overall move seems headed towards Rs 635, which is the next imminent barrier. CLICK HERE FOR THE CHART

Marico Ltd (MARICO)

Outlook: Consolidation 

Post the drawdown of December 2021, the stock has gone sideways. On the upper end, Rs 550- Rs 560 remains as the barrier, while Rs 470 - Rs 450 comes out as the lower support.  The clear trend would emerge once the stock breaches either side of the consolidating range.  CLICK HERE FOR THE CHART

Britannia Industries Limited (BRITANNIA)

Outlook: Golden Cross hints at new all-time high

Golden Cross breakout on the daily chart signals at a positive trend for the medium-term. The price action is supportive of the bullish bias and as long as the support of Rs 3,600 is defended, the stock could jump to hit a new all-time high.  CLICK HERE FOR THE CHART