Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Nifty FMCG – Bearish Island Reversal Pattern to be Revisited?

37 sec read

Nifty FMCG Daily Charts

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

RRG Charts – Nifty FMCG

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

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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