FMCG stocks have been raising continually for so many months so we would look into the elliotte wave analysis of the FMCG index. The Elliott wave analysis of index is indicating that we might be in the final stage of the market uptrend. it can be seen from the chart that we are in the fifth wave of the trend and also at the top of the parallel line drawn. so it appears that we are in the final stage of the up move or we have completed the same. It can also be noted that the volumes are also high at the to of the fifth wave which is indicating the we might have topped or in the topping process. One this is sure we cannot expect any spectacular gains in the FMCG stocks in the coming months/years, have we are in the final stages of the up move post which we should see a healthy correction, which can atleast take the index to the lower support line. which happens to be around 10000 levels which is a fall of 30% from the current levels, I would try to work out the Elliott wave analysis of the 5th wave publish it in blog.

 

M.Sri Mahidar

Trend is Friend.