stock market today Since the start of New Year 2022, FMCG stock has been in an ‘uptrend’. This is mainly due to an increase in the demand for edible oil and a fall in commodity prices after reaching several-year highs. On the chart pattern Nifty FMCG index has given fresh breakout at 39,500 level and has taken strong support near 40,500 level.
According to Share Market According to experts, the Nifty FMCG index is currently facing minor hurdles at the level of 41,800. Once the Nifty FMCG index closes above 41,800, some sharp upside can be expected in the index. He said HUL, Dabur, Tata Consumer and Godrej Consumer Products are some of the FMCG stocks which may outperform others in the upcoming rally.
Speaking on the reason for the increase in Nifty FMCG IndexVK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “A key trend in the market is consolidation in FMCG. The FMCG index is up 10% this year. The segment is a good defensive play during this turbulence and is a staple for the segment. The technical advantage is that the presence of FIIs is limited and, therefore, FIIs are not selling.”
On the technicalities fueling FMCG stocks, Sumeet Bagadiya, Executive Director, Choice Broking said, “Nifty FMCG index has recently given a breakout at 39,500 level and has taken a firm footing at 40,500 level. It is lighter at 41,800 level. Facing hurdles.Once it breaks this barrier and closes above this level, we can expect a sharp rally in the index and major FMCG stocks like HUL, Tata Consumer, Dabur and Godrej Consumer Products.
On why FMCG stocks are rallying, Motilal Oswal says, “Many commodity prices have fallen by 30-40 per cent in recent weeks, giving relief to the FMCG sector. Even crude oil Prices have also come down below $100 a barrel, which is positive. Auto sector stocks for sectors like paints, FMCG, cement, tyres, aviation etc. are in momentum due to soft input costs.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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