FMCG beat market blues; charts hint 15% upside for ITC, Varun Beverages

The Nifty FMCG index hit a fresh all-time high on Thursday even as the key benchmark indices wilted under selling pressure, tracking losses in global markets.

Global markets wilted under selling pressure on Thursday after the US Federal Reserve raised interest rates by 75 basis points, and signalled further tightening ahead in its bid to combat red-hot inflation.

Further, the RBI is scheduled to meet next week to decide on the interest rates back home. 

Despite the current uncertain market scenario, investors then to prefer FMCG a safer sector compared to others. So far on Thursday, the Nifty MFCG index had gained 1.1 per cent and registering a new all-time high, while the benchmark indices were down close to a per cent.

Among individual shares, Marico and Varun Beverages jumped over 2.50 per cent each, while ITC and Hindustan Unilever advanced near about 2 per cent each. 

Here’s the technical outlook on the FMCG stocks: -

NIFTY FMCG

Likely target: 47,000

Upside potential: 4.25%
 

After scaling the 42,000 mark in July this year, the Nifty FMCG index proceeded with a strong up move. There is a divergence on the Relative Strength Index (RSI), which further affirms the index strength. Thus, until the index defends this breakout mark of 42,000, the positive momentum could easily eye 47,000 mark.  CLICK HERE FOR THE CHART

Marico Ltd (MARICO)

Outlook: Breakout could eye 8% upside
 

The stock is making persistent attempts to defeat the bear selling occurring near Rs 550-level. Only a robust close above this obstacle could result in a fresh breakout, shows the weekly chart. The support cushion for the stock exists at Rs 485-level. The immediate support also stays at Rs 500-mark. The Moving Average Convergence Divergence (MACD), a momentum indicator, also recognizes the positive effort delivering accommodative support by rising over the zero line. A breakout might eventually see rally towards Rs 590-level.  CLICK HERE FOR THE CHART
 

Varun Beverages Ltd (VBL)

Likely target: Rs 1,350

Upside potential: 15%
 

Among the FMCG stocks, Varun Beverages is the that has gained the most so far this year - rising a whopping 46 per cent. The trend is robust with gradual vertical rise. Every decline has seen accumulation and the counter shows has been resisting selling pressure. The immediate basis support for the stock is seen at Rs 1,050-level, and a rally could lead the stock to Rs 1,350 as the immediate reach. CLICK HERE FOR THE CHART
 

Hindustan Unilever Ltd (HINDUNILVR)

Oulook: Sluggish trend
 

While the shares of Hindustan Unilever gained 19 per cent so far this year, the overall trend has not been exciting on charts. The sluggish move seems to fade the bullish excitement, as the stock continues to act as a slow runner. The trend is up with a support at Rs 2,400 mark. An up move above Rs 2,750 could eye for further upside to Rs 2,800. CLICK HERE FOR THE CHART

I T C Ltd (ITC)

Likely target: Rs 400

Upside potential: 15%
 

ITC stock has shown a resilient trend in the current year. The stock has zoomed 8 per so far in September defying negative sentiment. The immediate support for the stock exists at Rs 330 and Rs 310, and the stock seems on course to Rs 400-mark. CLICK HERE FOR THE CHART

Dabur India Ltd (DABUR)

Outlook: Bearish Pattern
 

There is a “Head and Shoulder” pattern on the daily chart of Dabur India, and if the counter fails to hold the 200-day moving average (DMA) support set at Rs 548 on a closing basis, the trend could enter a bearish grip, shows the daily chart. On the upside, the immediate hurdle for the stock falls at Rs 580 level. CLICK HERE FOR THE CHART