Weekly Technical Outlook: NIFTY FMCG 44210.10 weekly change (+2.59%) By Gepl Capital
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NIFTY FMCG
Observation
* On the weekly timeframe of NIFTY FMCG, We can spot that post September 2021 the index witnessed a pause after a strong uptrend from March 2020. Comparing the NIFTY FMCG Index to the Benchmark Index NIFTY50, Post September 2021 the FMCG Index did not correct much as to what the benchmark Index did. This shows a strong Relative strength of FMCG Index as a whole.
* The Index have sustained above prior week High which was a Doji candlestick pattern. The Candlestick Pattern was found while retesting Pattern neckline level.
* FMCG Index have taken support from 16 Week EMA before showing a bounce in the latest week. The Average acted as a variable support for the prices
* RSI plotted on Weekly timeframe have started to Rise without entering its consolidated zone, this illustrates that the Index have started to gain momentum again.
Inference & Expectations
* Looking at the overall structure of the prices and the evidence provided by indicator we can infer that FMCG has a strong and sustainable texture in its prices trend.
* We expect the NIFTY FMCG to go Higher Further till the level of 51000.
* Our Bullish View shall be negated if we see prices sustaining below 41000 levels.
NIFTY PSU BANK
Observation
* On looking at the weekly charts of Nifty PSU BANK, we can spot that the overall trend in the Index is on positive side.
* PSU BANKING index has shown a bounce on the upside after retesting the breakout from bearish channel, this indicates the continuation of prior uptrend.
* The index while taking support from the channel, at the same time have taken support from the 26 Week EMA as well. The 26 Week EMA have provided a variable support for the prices on every dip in its uptrend.
* Prices are continuously hovering around the upper Bollinger band on the daily timeframe which illustrates that with the uptrend, volatility is rising as well.
* RSI on Daily as well as on weekly timeframe is sustaining above 60 levels reflects the momentum built-up in the stock.
Inference & Expectations
* Looking at the overall structure of the prices and the evidence provided by indicator we can infer that the index has began to continue its prior uptrend.
* We expect the Index to go Higher till the level of 3500.
* Our Bearish view may negate if prices sustain above the level of 2870.
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