Technical Trader

FMCG Theme Consumption is the theme which has seen multi fold rise both in terms of market and market cap over last decade in India. FMCG with increasing infrastructure and logistics has been able to tap into the Rural demand of India to experience exponential growth in market size. This has been duly reflected in price movement of Nifty FMCG (CNX FMCG - used interchangably for SEO Purposes). Nifty FMCG - Monthly Price Movement Let us begin with understanding monthly chart for CNX FMCG over last two decades to study the price action: Nifty FMCG has risen by about ten times over last two decades,  however, this increase has not been lateral,  with two consolidation periods totaling eight years, the major rise has been during last nine years since late 2009 which was primarily fueled by the two heavy weights of CNX FMCG - Hindustan Unilever and ITC (Please bear in mind that the index gets rebalanced every six months so this is more of a continuing high weight age consi...

The Background  Reliance has formed three #Doji candles over last four days of November-2020 series expiry. All these three Doji's were formed within the intraday price range of 1920-1980. This kind of formation on monthly expiry of a derivative series signifies that Reliance Industries is all set for a sharp movement on the side of the breakout of the price range. The Weakness First trading day of December series, Reliance finally broke the 1920 price range on the lower side during intraday trades, however, closed within the same range at 1929. Also RSI of Reliance slipped below 40 once again which shows the stock is still bearish and could see further correction unless we see divergence in RSI. This shows that there is a higher possibility of a breakdown in Reliance once there is closing below 1920 and this weakness could drag reliance down to test previous low of 1835. Upon closing below 1835, there is Fibonacci Retracement support at following levels: 61.8% - 1795 50% - 1...