Sensex, Nifty at fresh record high; UltraTech Cement, RIL, Kotak Mahindra Bank top gainers
June 26, 2024 / 08:57 AM IST
FMCG, consumer durable indices to move towards higher levels: Hitesh Rathi, Technical & Derivative Analyst, Angel One
The NiftyFMCG and consumer durable indices which are representative of the Consumer goods space have both climbed to their fresh ATH levels in the recent few days, indicative of a strong underlying current and primary uptrend. However, constituent stocks of both the indices largely diverge from the uptrend in their representative indices.
In the FMCG basket, stocks like Balrampur Chini, Nestle, ITC, Radico, PGHH, Tata Consumer continue to trade sideways. In contrast, only a handful of stocks like VBL, Godrej CP, UBL, Marico and Dabut contribute towards the gains, suggesting an absence of a broad-based participation.
As far as the Consumer durable index is concerned the situation, is not much different. But the silver lining is, that the most stocks after the recent period of underperformance, appear to be forming a base like formation, indicative of exhaustion in supply pressures.
Considering the current underlying trend in the representative indices, and the developing chart set up for most stocks in this basket, the sector looks ready to move towards higher levels in the coming days.
