ITC, Nestle India: Fresh breakouts to assist FMCG index reach historic peak

FMCG stocks may rise up to 17% once the index hits a new all-time high

Shares of ITC hit a new all-time high, steering robust sentiment for Godrej Consumer Products and Varun Beverages, which are on the verge of claiming their respective uncharted territories. 

Both stocks are presently trading near their crucial highs. Godrej Consumer Products has a 52-week high of Rs 978.60 and Varun Beverages’ historic peak stays at Rs 1,472.

The Nifty FMCG index also trades near the all-time high of 46,413-mark and is presently attempting to breakout into new terrain. 

Here’s the technical outlook of FMCG stocks exhibiting breakout structures:- 

NIFTY FMCG

Likely target: 48,000

Upside potential: 3%

The current scenario shows the index is making efforts to absorb as the selling pressure emerging in the range of 46,500 to 46,000 levels. When this tussle gets conquered, the index shall enter new uncharted territory, with higher levels to achieve.

The support for upward bias falls at 45,500-mark, and until this cushion is held aggressively, the trend is likely to see a bullish bias. The next reach for the index might be 47,000. CLICK HERE FOR THE CHART

ITC Ltd (ITC)

Likely target: Rs 450 and Rs 470

Upside potential: 12% to 17%

Shares of ITC reached a new historic peak after absorbing all the sell-off occurred in the range of Rs 395 to Rs 390 levels.  Such strength points to an aggressive trend, which shall further hit higher levels in the uncharted territory. As of now, the medium-term trend is well poised over the support of Rs 360 levels

The bullish trend is headed in the direction of Rs 450 and Rs 470 levels. The weekly chart clearly points to a “Rising Wedge pattern” breakout. CLICK HERE FOR THE CHART

Godrej Consumer Products Ltd (GODREJCP)

Likely target: Rs 1070

Upside potential: 11%

The stock is making efforts to break out of the “Ascending Triangle” pattern, established on the weekly chart. Once that happens, the price action shall see a move in the direction of Rs 1,070, its next major hurdle. 

Immediate support for the upward bias falls at Rs 940, which needs to be adhered on the closing basis, as per the daily chart. The Relative Strength Index (RSI) trades near 60 values, away from the overbought territory, suggesting more room for upside. CLICK HERE FOR THE CHART

Nestle India Limited (NESTLEIND)

Likely target: Rs 21,500 (once Rs 20,000 is crossed)

Upside potential: 7.5%

Nestle India shares have positively broken out of the “Falling channel”, as per the daily chart. This move has led the stock to surpass the 200-day moving average (DMA), reflecting a positive momentum. 

The 200-DMA is situated at Rs 19,270 and stability over this mark could garner underlying strength in the stock. A breakout over Rs 20,000 may see the stock hitting a new all-time high of Rs 21,500 level. CLICK HERE FOR THE CHART

Colgate Palmolive (India) Limited (COLPAL)

Likely target: Rs 1,700 (once the 200-DMA is taken out)

Upside potential: 10%

Post surpassing the 50-DMA at Rs 1,488, the stock underwent a sideways trend. This move assisted in developing a support base near the key moving average, as per the daily chart. 

Now, the stock needs to overcome the hurdle of Rs 1,552 level, which is its 200-DMA. Once this gets taken out, the bullish trend shall move in the direction of Rs 1,700. CLICK HERE FOR THE CHART