Britannia sees 'Darvas Box'; VBL, Marico show reversal signs, says analyst

Om Mehra, tech analyst at SAMCO Securities explains that Britannia is trading in a well-defined rectangular range, or more precisely, a Darvas Box repeatedly finding support near the lower boundary.

FMCG stocks have been under pressure since the start of the calendar year. The Nifty FMCG has declined nearly 7 per cent as against a 1.8 per cent dip in the Nifty 50 index. A major reason for the underperformance was a sharp 21 per cent fall in FMCG heavyweight ITC.  The Nifty FMCG index, however, has recovered by 4.5 per cent from its recent low of 49,336 hit on February 2, 2026. On Tuesday, as of 10:20 AM, the Nifty FMCG index was up 0.8 per cent at 51,700 levels, while the Nifty was down quoted flat around 25,690 levels.  Going ahead, as an investment strategy, analysts remain selectively bullish on the FMCG stocks on the back of a likely improvement in semi-urban and rural demand. READ MORE  Against this background, Om Mehra, technical research analyst at SAMCO Securities prefers these 3 FMCG stocks - Marico, Britannia and Varun Beverages based on the existing chart patterns. 

Tech view on FMCG stocks by Om Mehra

  Varun Beverages (VBL)  Current Market Price: ₹457 

 

 

  Varun Beverages (VBL) is attempting a recovery after a sharp corrective leg that dragged the stock toward the lower Bollinger Band near the ₹430–₹435 zone. The recent bounce from these levels indicates demand emerging at lower prices, says Om Mehra of SAMCO Securities.  The last few sessions show a higher-low formation on the short-term chart, suggesting stabilisation after the steep decline. The MACD histogram is narrowing in the negative zone, indicating that downside momentum is gradually easing, though a decisive crossover is still awaited.  The analyst believes that as long as VBL stock holds above ₹445, followed by a sustained move above ₹462 could open the path towards ₹480–₹490 zone in the near term.  Britannia Industries  Current Market Price: ₹6,121 

 

  Britannia Industries continues to trade within a well-defined rectangular range, or more precisely, a Darvas Box, with the stock repeatedly finding support near the lower boundary over the past several months, explains Mehra.  In technical terms - 'Darvas Box' is formed when the stock enters a period of consolidation, oscillating between a high (top of the box) and a low (bottom of the box) over a period of time.  Mehra explains that the recent bounce in Britannia from ₹5,800 level reflects sustained demand at the base, with prices now hovering around ₹6,106 and positioned above the 20-day SMA at ₹5,900. This indicates improving near-term momentum. The price movement within the range shows a gradual formation of higher lows, suggesting accumulation rather than distribution.  On the positive front, a decisive move above ₹6,140 could unlock upside toward ₹6,350–₹6,500 in the near term. Accumulation near ₹5,900–₹5,950 remains favourable, with ₹5,770 serving as the critical support to monitor, reckons the analyst from SAMCO Securities.  Marico  Current Market Price: ₹773 

 

  Marico has resumed its upward trajectory after a brief pullback, and the daily chart is forming higher-highs and higher-lows. The stock is holding above both the 50-day average near ₹746 and the Supertrend support around ₹730, indicating a stronger base beneath current levels, says Mehra.  The recent cluster of green candles near ₹770–₹775 reflects steady demand rather than a one-day spike. Momentum is strengthening, with the MACD in positive territory and the histogram expanding, suggesting continuation of the current leg.  As long as the stock sustains above ₹750, buy on dips remains a reasonable approach. A sustained move above ₹775 could open the path toward ₹800–₹820 in the near term, adds Mehra.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.