FMCG index likely to hit 50,000; ITC, Britannia, Marico may rally up to 20%

The FMCG index has risen 10 per cent since the start of the current year, with ITC, Nestle India, Radico Khaitan, and Varun Beverages zoomed 31 per cent, 12 per cent, 11 per cent and 10 per cent each

The Nifty FMCG index hits a new all-time high post Marico reported 18 per cent growth in the net profit for the fourth quarter ended March31, 2023. The stock was seen skyrocketing 9 per cent in the early trades on Monday. 

Barring Britannia Industries and United Breweries, all other FMCG stocks were seen trading in green on Monday. Shares of Dabur, Tata Consumer Products and Mc-Dowell were the top gainers, soaring over 1 per cent each. 

The FMCG index has so far risen 10 per cent since the start of the current year, with ITC, Nestle India, Radico Khaitan, and Varun Beverages zoomed 31 per cent, 12 per cent, 11 per cent and 10 per cent, respectively. 

Here’s the technical outlook of FMCG stocks amid hitting new historic peak:-

NIFTY FMCG

Likely target: 50,000

Upside potential: 3%

The index has revealed a steep rally following the breakout over 46,500 levels. The momentum is highly robust, with trend showing a resilient behavior. Immediate support falls at 47,800 to 47,500 range. The medium-term outlook remains optimistic, with the index aiming to hit 50,000 levels. 

The price action signifies a bullish bias in the overbought category, implying buoyant strength , as per the daily chart. CLICK HERE FOR THE CHART

ITC Ltd

Likely target: Rs 525

Upside potential: 20%

The stock continues to scale higher highs, with respective support levels bolstering the positive bias, as per the weekly chart. The momentum indicates a resilient boldness as the overbought category seems to override the constant selling pressure. 

Immediate support exists at Rs 400 and Rs 369, with a medium-term rally to reach Rs 525 levels. The candlestick formation reveals bullish bias since higher closes are dominated with long body candles. CLICK HERE FOR THE CHART

Marico Ltd (MARICO)

Outlook: Surpassing Rs 550 could see a new all-time high

The stock has conquered the 200-day moving average (DMA) set at Rs 503 levels, as per the daily chart. The trend line breakout has also aided the up move, instilling a positive strength for the upward run. 

Hereon, a breakout over the key hurdle of Rs 550 could see this counter heading towards a new historic peak of Rs 600 levels. The immediate support comes to Rs 510 levels. And the price action is demonstrating a rally towards the hurdle mark. CLICK HERE FOR THE CHART

Britannia Industries Limited (BRITANNIA)

Likely target: Rs 5,000

Upside potential: 10%

Shares of Britannia Industries reached a new historic peak on Monday, implying further upside in the coming sessions. Until the stock defends the support of Rs 4,500, which needs to be considered on the closing basis; the upward trend shall move in the direction of Rs 5,000 levels.

Overall pattern on the weekly and monthly charts indicate a “Higher High, Higher Low” formations. CLICK HERE FOR THE CHART

Nestle India Limited (NESTLEIND)

Likely target: Rs 24,500 (stability over 22,500)

Upside potential: 10%

The stock is in a bull run, following the breakout of “Golden Cross”, as per the daily chart. Now, the trend needs to close over Rs 22,500 to enter the next leg of upside that shall aim at Rs 24,500 levels.

The Bull run is intact until the stock defends the support of Rs 21,500, its immediate support mark. The price action is not showing any weakness or dominance of the sell-off, as per the daily chart. CLICK HERE FOR THE CHART