As FMCG shares led by Godrej Consumer fell up to 11% on Monday post the volume growth concern; the Nifty FMCG index slipped below its 20-DMA after a two-week struggle; chart hints at further 4.5% dip.
The Nifty Energy index is currently consolidating, while, Nifty FMCG has witnessed a temporary technical bounce
The Nifty FMCG index is currently exhibiting a downward trend in the near term, while Nifty Pharma index continues to exhibit a bearish trend in the near term
Nifty Energy is currently trading near critical support levels, around 37,700 and Nifty FMCG is showing a clear downtrend on the charts, with a key support level anticipated around 55,900
The Nifty Energy Index is currently trading within a well-defined range between 39,700 and 38,150
The Nifty Energy Index is currently in an oversold zone, as suggested by technical indicators like the MACD and RSI.
The Nifty Metal Index has been experiencing a downward trend in the near term, as indicated by the recent sharp correction.
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The Nifty Pharma Index is currently trading in a defined range between 23,700 and 22,700. This suggests that the market is experiencing indecision, with neither buyers nor sellers dominating.
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Support levels are crucial in this corrective phase, and for the Nifty FMCG Index, key support levels are identified at 61,180 and 59,500.
According to Nielsen, the consumer sector grew 4% Y-o-Y in Q1FY25, down from 6.6% in Q4FY24. Pricing saw a marginal increase of approximately 0.2 per cent, while volumes rose 3.8% Y-o-Y.
The Nifty FMCG Index is demonstrating a bullish trend in the near term, as indicated by its recent upward movements on the charts.
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Analysts said HUL is already at a 52-week high and has seen a sharp up move in the past two months. Thus, they believe that some profit booking in the near term is possible.
The Nifty FMCG Index is currently in an overbought zone on the charts, despite the overall bullish trend
The Nifty Pharma Index is currently showing a bullish trend on the near-term charts but is approaching a significant resistance level around 20,850
Technical indicators such as the RSI, MACD, and Stochastic are showing signs of potential correction and underperformance for the Nifty Pharma index
The Nifty FMCG Index is showing a bullish trend on the charts, with the potential for a fresh bullish breakout if it closes above 55,500
According to Ravi Nathani, an independent technical analyst, the Nifty Pharma index is quoting close to its ley support at 18,325; hence one may consider a buy on dip strategy here.