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NIFTY FMCG: 40577.95 weekly change (0.87%)

Observation

* On the monthly time frame, the NIFTY FMCG has been in a strong up move since June 2020 indicating that the long term of the FMCG index is strongly bullish.

* On the weekly chart, we can see that the prices broke out of a Rising Wedge pattern and gained momentum on August 2021. The prices have been forming a higher high higher low pattern since then.

* On the weekly time frame we have shown the Bollinger bands, wherein we can see that the prices have been finding support near the 20 Week SMA since November 2020, with slight whipsaws. Currently the prices are riding the upper Bollinger bands and testing fresh life time highs. The Bands too seem to be expanding as prices move higher, indicating expanding volatility on positive side as the price test fresh life time highs.

* On the indicator front, RSI plotted on the weekly time frame can be seen placed above the 65 mark and moving higher, indicating expanding bullish momentum in the up trend.

* Going ahead the 41981 (78.6% extension level of the rise from 22699-35000 projected from 32312) will be the level to watch for, if this level is breached above the 41981 we might see the prices move higher and test the 44613 (100% extension level of the rise from 22699-35000 projected from 32312).

* The level of 38915 (2 Week Low) will act as a red flag level in the sessions to come, if the prices breach below this level, we can assume that the index has entered a corrective phase and might see the prices move lower towards the 36700 (Multiple touch point level)

Inference & Expectations

* NIFTY FMCG on the higher time frame seems to be in a strong bullish phase.

* On the weekly chart we can see that the prices have been forming a higher high higher low pattern and riding the upper Bollinger bands.

* From a medium term and short term perspective the prices seem to be gaining bullish momentum and moving higher.

* We expect this momentum to take the prices higher towards the 41981, if the prices breach above the 41981 mark, we might see the index move higher towards the 44613 level.

* The above analysis will hold true as long as the prices remain above the 2 Week low of 38915. If the prices breaks and sustain below the 38915 mark we might see the prices move lower towards the 36700 levels.

NIFTY ENERGY: 21148.35 weekly change (1.02%)

Observation

* On the monthly time frame we can see that the NIFTY ENERGY has witnessed a steep rally that took the index from 9750 in March 2020 to 21066 in June 2021.

* On the weekly chart we can see that the prices have been moving higher in a well channelized manner. Currently the prices seem to be heading towards the upper trend line after finding a support near the lower edge which also was placed close to the 20 Week SMA.

* In the week that passed by the prices managed to breach above the previous swing high and closed at Life Time High levels. The prices have been moving between the 20 Week SMA and the upper Bollinger Bands, indicating presence of bullishness in the medium to long term trend.

* On the indicator front the RSI plotted on the daily time frame can be seen placed above the 50 mark since May 2020, indicating presence of bullish momentum in the trend from a long term perspective. Currently it is moving higher levels after forming a bullish hinge near the 50 mark indicating, that the bulls have gained control of the trend.

* On the upside 22238 (50% extension level of the rise from 9750-19907 projected from 17159) will act as a key resistance level, if this level breaches we might see the prices will move higher towards 23436 (61.8% extension level of the rise from 9750-19907 projected from 17159).

* The level of 19977 (2 Week Low) will act as a red flag level, if the prices breach below this level we might see the price move lower towards the 19400-19046 which is a support cluster.

Inference & Expectations

* NIFTY ENERGY has been in a long term bullish trend.

* The price action on short and the medium term charts suggests that the prices are moving higher after finding support near the 20 Week SMA.

* We expect this momentum buildup to take the prices higher towards the 22238 mark, if this level is breached we might see the prices move higher towards 23436 levels.

* On the down side, the previous week low of 19977 will act as a support level, if this level is breached the prices might move lower towards the 19400-19046 levels.

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