Nifty FMCG index formed a classical bearish island reversal pattern during the month of July 2017 since then it is drastically under-performing nifty and moving in a sideways phase, tightly compressed for the last 5 trading months.
An island reversal is short-term reversal pattern that forms with two overlapping gaps. Gap Zone on the daily chart comes around 26800-27075. Medium term outlook is bullish as the weekly sentiment continues to be positive for the 6 consecutive straight weeks.
RRG Charts suggests a positive momentum building up in the very short term and currently revolving in improving quadrant with increased momentum
Relative Strength among Nifty FMCG Stocks
Tops 5 stocks who is currently outperforming the underlying FMCG stocks include TataGlobal, Jublfood, MCDowell, Britannia, Hindustan Uniliver relative to Nifty FMCG index.
Overall breakout from the large consolidation balance is expected which is expected to test the bearish island reversal zone 27000 levels in 1-2 months duration. Short term and Medium term investing bias in this counter is positive. Short term Supports are expected around 25200