Nifty FMCG zooms to all-time high by climbing 7%; heres what technicals look like
As FMCG pack has emerged as the new favourite post the surprise election verdict, there has been seen resilience in the pack, which has led it to record highs in trade today.
Nifty FMCG stocks extended their previous day’s gains and zoomed up to 6.63 per cent in Wednesday’s trade amid sharp recovery witnessed post the choppy opening session.At the last count, all of the 15 stocks constituting the Nifty FMCG index traded in the green, with notable gainers from the pack being Radico Khaitan, Marico, United Spirits and HUL, registering gains between 7-8 per cent.
In the past two trading sessions, the Nifty FMCG index has displayed remarkable resilience despite a significant downturn in the overall markets. Most of the stocks in this sector have exhibited notable increases in both price and trading volume, signifying robust market momentum.
At the day’s high, Radico Khaitan zoomed as much as 9 per cent to day’s high price of Rs 1,709.95 apiece. On a 1-year basis, the stock has delivered over 42 returns for its shareholders.
Similarly other FMCG majors including the likes of Marico and HUL at day’s high have gained 8.5 per cent and 9 per cent, respectively.
Zee Business Managing Editor Anil Singhvi taking cognisance of the current market dynamics advocates a rejig in investors’ portfolio. He believes investors will be better off by increasing their allocation in defensive stocks in their folio. Likewise, a potential shift from the high beta sectors to defensive sectors will bode well as they will likely deliver a better performance.
What technicals look like for the Nifty FMCG index after it has hit new high today?
Osho Krishan, Sr. Technical and Derivatives Analyst, Angel One is of the view that the sentiment in the index remains bullish, while we couldn’t ignore the potential for a cool-off. He goes on to say that the index has recently broken out of a consolidation phase on the daily chart and has subsequently surged past previous highs to achieve new record levels.
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