FMCG stocks have rallied up to 9 per cent in the last 3 trading sessions after Nestle India reported 27 per cent growth in Q4 net profit. Nestle stock has led the rally in FMCG shares with a gain of nearly 9 per cent.
Among others, United Spirits, Emami, Hindustan Unilever, Varun Beverages, Tata Consumer Products and Dabur India surged 4 - 7 per cent each. The Nifty FMCG index rose 3.3 per cent, while the Nifty 50 remained flat in the same period.
Given this background, Kunal Shah Senior Technical Analyst at Mirae Asset Sharekhan helps decode trading strategy in Nestle India, Hindustan Unilever and Marico.
Nestle India
Current Market Price: ₹1,410
Nestle has delivered a decisive bullish breakout on the weekly chart, clearing its previous all-time high of ₹1,340 accompanied by a surge in trading volumes, suggesting strong institutional participation and conviction behind the price action, says Kunal Shah.
From a technical standpoint, the analyst believes the stock has entered a 'Buy on Dip' phase.
"This phase is characterized by the principle of polarity, where the former overhead resistance at ₹1,340 is now expected to function as a robust floor or support level during any minor retracements," explains Shah.
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The outlook remains highly optimistic, with the next major psychological and technical hurdle pegged at ₹1,500, says Shah.
Supporting this upward trajectory, key momentum indicators (such as the RSI or MACD) have turned positive, aligning with the price breakout to confirm a high-probability buy signal. Investors should view temporary pullbacks toward the breakout zone as strategic entry opportunities for the medium term, the analyst adds.
Hindustan Unilever (HUL)
Current Market Price: ₹2,368
Shah believes that HUL has demonstrated a robust turnaround from its recent lower levels, successfully staging a breakout above the critical ₹2,200 mark.
"The ₹2,200-mark, which previously acted as a formidable multi-month hurdle, has now been convincingly surpassed, signaling a shift in market sentiment from cautious to optimistic," says Shah.
Technically, the stock has transitioned into a clear "Buy Mode." With the primary resistance at ₹2,200 now converted into a strong foundational support, the path of least resistance appears to be upward.
Traders, Shah reckons are now focusing on the immediate psychological hurdle at ₹2,400. A sustained move above this level is likely to accelerate momentum, clearing the deck for a potential rally toward the ₹2,600 zone.
This recovery is further supported by improving volume profiles and a positive shift in momentum oscillators. Investors can look at minor pullbacks toward the ₹2,200 – ₹2,250 range as favourable entry points for the next leg of the up-move, says the analyst from Mirae Asset Sharekhan.
Marico
Current Market Price: ₹774
Marico has emerged as a standout performer in the FMCG sector, demonstrating remarkable relative strength during recent market volatility. While the broader indices faced selling pressure, Marico successfully defended its crucial support zone between ₹720 and ₹730, marking a definitive bottom for the recent correction, notes Shah.
"A key technical highlight is the stock's precise reversal from its 20-week Exponential Moving Average (20EMA). This "smart recovery" underscores the strong underlying demand at lower levels, keeping the medium-term bullish structure intact," the analyst explains.
Shah believes that Marico currently maintains a strong 'Buy Mode' configuration, with a decisive weekly close above ₹775 likely to trigger a fresh wave of momentum, potentially propelling the stock toward new all-time highs.
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