Britannia, ITC: Bet on FMCG stocks as index poised to record historic peak

A new all-time high on Nifty FMCG index may trigger up to 25 per cent upside in selective stocks

Shares of major FMCG (Fast Moving Consumer Goods) companies are hitting new highs since the last few sessions, as market participants regain confidence in safe havens.  Barring CY2019, the FMCG index has reached new all-time high every year since its debut in 2011. 

In addition, with the exception CY2015 and CY2019, the index has closed every year higher than its previous year’s close. In CY2022, the index closed at 44,171 and is now up 4.20 per cent so far. The highest return was in 2012, the index delivered a whopping 48 per cent gain. 

ITC and Britannia Industries have recorded a new historic peak in recent sessions and so far are up 16 per cent and 7 per cent, respectively, this year. Among Nifty 50 constituents, post Budget 2023 only three stocks managed to hit new all-time highs. These are  ITC, Britannia and Mahindra & Mahindra.

Shares of Radico Khaitan also set a new 52-week peak, crossing 3-month high on Monday. While Hindustan Unilever and Godrej Consumer Products remained laggard, if the index succeeds to claim a new all-time high, which it is currently shy of 34 points, it can shove well-known stocks on bullish radar. 

Here’s the technical outlook for FMCG stocks, which are poised for their next trend:-

NIFTY FMCG

Likely target: 47,000 - 47,500

Upside potential: 2.50%

The overall trend in the Nifty FMCG index reveals a positive bias, as the momentum is set to hit a new all-time high soon. Earlier, post breaching 45,000-mark, the index managed to retrieve the positive stance close to 43,500 levels. Now, the index has decisively surpassed this hurdle of 45,000 and is attempting to record a new high. When this happens, a fresh breakout shall see a rally in the direction of 47,000 -47,500 range. The current all-time high of the index is at 46,331 level. Immediate support for the index exists at 45,500. CLICK HERE FOR THE CHART

Britannia Industries Limited (BRITANNIA)

Likely target: Rs 5,000

Upside potential: 8.50%

Shares of Britannia Industries have broken out of the “Inverse Head and Shoulder” pattern, with resolute volumes. This chart structure denotes a bullish upside in the near future. The trend is resilient and possesses accumulative sentiment on respective correction. 

A closing basis support falls at Rs 4,500 and Rs 4,400 levels, and only a conclusion breakdown beneath these marks could alter the positive outlook. The upward trend eyes Rs 5,000 mark, as the next immediate reach, as per the daily chart.  CLICK HERE FOR THE CHART

Radico Khaitan Limited (RADICO)

Likely target: Rs 1,350 and Rs 1,500

Upside potential: 13% - 25%

Radico has recorded a new 52-week high today and is well befitted for more uptrend. The current bullish bias reflects an immediate reach to Rs 1,350 mark, followed by Rs 1,500 levels. The stock has defeated all the sell-off bears tossed near Rs 1,150 levels, making underlying strength to become more compelling. Bulls now have the control over the stock, even after the stock entered the overbought territory of the Relative Strength Index. The support for the stock exists at Rs 1,100 levels. CLICK HERE FOR THE CHART

Hindustan Unilever Ltd (HINDUNILVR)

Outlook: Sideways trend

Hindustan Unilever shares are presently trading in a broad range of Rs 2,750 to Rs 2,450 levels. And until the momentum indicator, Moving Average Convergence Divergence (MACD) does not sustain over the zero line, the trend is anticipated to remain sideways. Stock may see a breakout over Rs 2,750 level, once the MACD decisively holds the ground over the zero line. A rally towards Rs 3,000 may emerge post the breakout. CLICK HERE FOR THE CHART

ITC Ltd (ITC)

Likely target:  Rs 450

Upside potential: 13% 

Shares of ITC have firmly sustained over the crucial range of Rs 360 - Rs 350 levels, confirming a bullish scenario for days ahead. The stock is clearly witnessing buying in the overbought category of RSI, strongly reading its underlying bullish strength. The stock is poised to scale further highs of Rs 425 and Rs 450 levels. The recent surge in the volumes has also confirmed the positive interest of market participants towards the stock. 

The medium-term outlook of ITC shares shall witness a bull-run, as long as the significant support of Rs 325 is not broken. CLICK HERE FOR THE CHART