The Nifty FMCG index on Friday rallied 202 points or 0.69 per cent to close at 29,464, after two continuous negative sessions. The index, on Friday, opened with a strong buying, rose towards 29,450 levels but witnessed minor profit-booking during the mid-session. However, it recovered at the end of the session.
The index has a strong support of 28,400 for the medium-term perspective. The immediate support comes in at 29,000 followed by 28,800, as per the daily chart. The current levels are trading below 100-day moving average (DMA) located at 29,557, which is its immediate resistance level.
The trend looks dicey as it trades below 200-day moving average (DMA) located at 29,742; however, the index managed to hold a key level of 28,800, chart suggests. The next resistance comes in at 29,800 levels.
The technical indicator MACD (moving average convergence and divergence) has made positive crossover below zero, indicating more upside. RSI (Relative Strength Index) is currently trading at 48, and is moving towards overbought territory of 70.
The major rally will be seen only above 30,000 as possible short covering and an addition of longs will forge the new trend. The current trend seems to be a sell on rise; however till index is trading above 28,800, nothing can be remarked as bearish trend. The recent trend indicates the index is holding ground around 28,800 levels. CLICK HERE TO VIEW CHART