It’s a sense of ‘7th sky’ when investor find out that the 50-stock bundle is rallying higher and stock prices are following the same. After all the toil and turmoil of tariff war between Sino-U.S. and bulging volatility in lieu of election season, the 50-stock bundle finally managed to rise more than 100 points in today’s session after giving a breakout of ‘Inverted Head and Shoulder’ pattern on intraday chart. FMCG stocks, which are known to play defensive against the winds of volatility, have seen a major spark in today’s session. The counter is trading at 29,898.05, 2.36% above from its previous close. On daily scale, the index has been bounced back after forming a ‘Double Bottom’ pattern, which is a trend reversal pattern whose reliability is very high. Bollinger Bands have shown lower weakness while retest of the previous lows. Bollinger %b was trading above zero levels. The index is expected to continue its bullish momentum and sense resistances near 30,933 and 32,107 levels respectively. Although Bollinger Bands and Bollinger Bands %b are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Godrej Consumer Products: Top gainer in FMCG sector today is trading at 667.9, 4.56% above from its previous close. The company has announced a dividend of 200% of Face value on May 10, 2019. The company has posted 51% jump in Q4, 2019 net profits.
- Dabur: Leading FMCG player is trading at 372.85, 3.03% above from its previous close. There has been a block deal of 159,450 shares in morning session today. The stock hits its 52-week low of Rs.360 on May 16, 2019.
- Hindustan Unilever Limited: Stock with highest free-float market capitalization is trading at Rs. 1,734.8, 2.89% above from its previous close. There has been a block deal of 59,213 shares on May 06, 2019.