FMCG stock has been in an uptrend since the beginning of the new year 2022. This was mainly due to an increase in the demand for edible oils and the decline in the commodity after reaching higher levels after several years. On the chart pattern Nifty FMCG index has given fresh breakout at 39,500 level and has taken strong support near 40,500 level. According to stock market experts, the Nifty FMCG index is currently facing a minor barrier at the level of 41,800.
Once the Nifty FMCG index closes above 41,800, then some bounce in the index can be expected. Share market experts said, HUL, Dabur, Tata Consumer and Godrej Consumer Products are some of the FMCG stocks which may outperform others in the upcoming rally.
FMCG index is above 10% this year
Explaining the reason for the rise in Nifty FMCG index, VK Vijayakumar, Main Invest Strategist, Geojit Financial Services said, “There is an important trend of strength in FMCG market in the market. The FMCG index is up 10% this year. Since the presence of FIIs is limited at present and hence FIIs are not selling.”
Tata, Dabur and Godrej Consumer may benefit
On technology fueling FMCG stocks, Sumit Bagadiya, Executive Director, Choice Broking said, “Nifty FMCG Index has recently given a breakout at 39,500 level and has taken a strong base at 40,500 level. It is facing slight hurdle at 41,800 mark. In the coming times, we can expect a sharp jump in the index and major FMCG stocks like HUL, Tata Consumer, Dabur and Godrej Consumer Products.
Know what Motilal Oswal said
When Motilal Oswal was consulted on why FMCG stocks are rallying, he said, “Many commodity prices have come down by 30-40 per cent in recent weeks, which has brought relief to the FMCG sector. Even crude oil prices have come down below $100 a barrel which is positive if they remain stable. Auto sector stocks have gained momentum due to moderation in input costs for sectors like paints, FMCG, cement, tyres, aviation etc.