FMCGs extend fall on RBI's warning of higher inflation; more pain on cards?

The recent Reserve Bank of India (RBI) monetary policy raised concerns on the inflation trajectory, adjusting FY24 from 5.10 per cent to 5.4 per cent. Meanwhile, CPI (Consumer Price Index) inflation stood at 7.44 per cent, exceeding the upper tolerance limit of RBI set at 6 per cent.

The Nifty FMCG ((Fast Moving Consumer Goods), which has climbed since the start of the current year, striking fresh all-time high, has begun displaying weakness. 

Barring Varun Beverages that reached a new all-time high and Colgate Palmolive (India), other FMCG stocks trade fragile.

Here’s the technical outlook of FMCg stocks:-

NIFTY FMCG

Outlook: Trend displays fragile sentiment

The present formation indicates a “Double Top” breakdown post negating the neckline at 52,500, subsequently falling under the 50-day simple moving average (SMA) set at 52345. The trend is fragile and suggests weakness for the immediate term. The next support exists at 50,122, which is its 100-SMA. CLICK HERE FOR THE CHART

Colgate Palmolive (India) Limited (COLPAL)
Outlook: Breakout remains upward

Shares of Colgate Palmolive (India) reveal a breakout of “Flag pattern”, suggesting a bullish underlying bias. The trend remains highly optimistic until the support of Rs 1,950 is defended. On the upside, the price action appears to be heading in the direction of Rs 2,500-mark.  CLICK HERE FOR THE CHART

Varun Beverages Ltd (VBL)

Outlook: Fresh breakout following a new all-time, may gain 15 per cent 

Shares of Varun Beverages hit a new historic peak on Thursday, exhibiting a resilient move to hold over the crucial barrier of Rs 880. The existing move is highly robust, with the price action directing a move towards Rs 1,050-mark. Immediate support exists at Rs 860. CLICK HERE FOR THE CHART

ITC Ltd (ITC)

Outlook: Hurdle at 50-SMA

Shares of ITC have broken key support of Rs 460, its 50-SMA, as per the daily chart. This down move has weakened the positive bias, with price heading in the direction of 100-DMA (Rs 433), its next support mark. A breach of the 100-SMA could trigger sell-off towards Rs 410-level. To recoup the positive bias, the stock needs to overcome Rs 460. CLICK HERE FOR THE CHART

Britannia Industries Limited (BRITANNIA)

Outlook: 200-SMA remains a key support

The 200-SMA situated at Rs 4,465 is the support for the Britannia Industries, which needs to be adhered on the closing basis. On the upside, immediate hurdle comes to Rs 4,675-mark. If the stock fails to hold the 200-SMA, the price action could dwindle to Rs 4,200-mark, as per the daily set-up. CLICK HERE FOR THE CHART