Since the news of Stake rise by Anglo-Dutch company
Unileaver PLC is ready to pump some +19K
crores which is roughly around 67%. The FMCG market had a hard time; slowdown,
high cost, profit margin, rupee depreciation, had affected almost all FMCG stocks.
We have seen a consolidation of HUL stock from last June-July even FMCG stock
have seen consolidation from September 2013.
FMCG CNX Analysis
Currently CNX FMCG is
just below 200DMA and trend-line is standing as a support. There is a possibility
we may see a reversal. Stake rise is not only a problem with HUL, many foreign
companies are rising stake in major FMCG companies like Pepsico, GSK and few in other subsidiaries. It was basically a
result of
SEBI’s and RBI’s change of rules in minimum public shareholdings.
FMCG CNX had formed a Symmetrical triangle now; It had not
given any directional breakout.
Analysis on HUL
The Stake rise news had created a fluctuation thus forming a Descending Triangle pattern, which had also given a negative breakout. Along with it we are also seeing a divergence now, and forming a reversal pattern.
The stock is not an attractive stocks for analyst and many find ITC to be a good bet, as the P/E & Earning for FY15(Expected) to be good comparatively good. Both RSI as well as MACD has shown some divergence.
The stock is not an attractive stocks for analyst and many find ITC to be a good bet, as the P/E & Earning for FY15(Expected) to be good comparatively good. Both RSI as well as MACD has shown some divergence.
I am not a pharmabull. But, I want to play it technically.
Buy if HUL give a positive breakout. I see this stock to be bullish and the stock is expected to move up to 680/725, if it fails to give any breakout the stock find
its support at 484/434.
