Weekly Technical Outlook: We expect the prices to go Higher till the level of 47665 level - 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 in the latest week has given a breakout from the Symmetrical Triangle pattern, indicating continuation of prior uptrend.
* The breakout was preceded by the prices taking support from the 20 week EMA which acted as a variable support for the prices.
* On the Daily timeframe prices are continuously hovering around the upper Bollinger Band reflecting the increase in volatility for an up move.
* RSI on the weekly time frame have shown a range shift, pointing towards the rising momentum of the prices.
Inference & Expectations
* Looking at the overall structure of the prices and the evidence supported by indicator we can infer that structure of NIFTY FMCG is placed well to continue its uptrend.
* We expect the prices to go Higher till the level of 47665 level.
* Our Bullish view will be negated if we see prices breaches below the level of 44100.
NIFTY FMCG : 46159.50 weekly change (+2.23%)
NIFTY PHARMA
Observation
* On the weekly timeframe of NIFTY PHARMA, we can spot that the prices are trading at seven weeks low, indicating overall bearish undertone. While prices have reversed from its prior resistance of 13760—13865 level.
* The Index on Daily timeframe have given a breakdown of Head & Shoulder pattern pointing towards continuation of prior down trend.
* The prices on Daily timeframe are hovering around the lower Bollinger Band indicating rise in volatility for down move.
* RSI plotted on the weekly timeframe is hovering below 50 level since October 2021, reflecting low momentum in the underlying.
Inference & Expectations
* Looking at the overall structure of prices and the evidence provided by indicator we can infer that the structure of NIFTY PHARMA is weak.
* We expect the existing trend to move Lower till the level of 12185 (swing Low).
* Our Bullish view will be negated if we see prices sustaining above the 13216 level.
NIFTY PHARMA : 12774.70 weekly change (-2.39%)
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