EquityPandit’s Outlook for NIFTY FMCG for the week (February 01, 2016 – February 05, 2016):

NIFTY FMCG:

Nifty FMCG index closed the week on positive note gaining around 2.80%.

As we have mentioned last week that resistance for the index lies in the zone of 18950 where the index has opened gap down on 20/01/2016. If the index manages to close above this levels then the index can move to the levels of 19300 to 19500 where 500 Daily SMA and 100 Weekly SMA are positioned. During the week the index manages to hit a high of 19198 and closed around the levels of 19069.

Resistance for the index lies in the zone of 19300 to 19500 where 500 Daily SMA and 100 Weekly SMA are positioned. If the index manages to close above this levels then the index can move to the levels of 19900 to 20000 where 100 & 200 Daily SMA is lying.

Support for the index lies in the zone of 18600 to 18700 where trend-line joining lows on 13-10-14 and 15-06-15 is lying. If the index manages to close below this levels then the index can drift to the levels of 18200 to 18400 where short term bottom has been placed.

The index has formed a Bullish engulfing pattern on weekly charts in a downtrend indicating the trend reversal.

Broad range for the index in the coming week is seen from 18500 on downside to 19500 on upside.