EquityPandit’s Outlook for CNX FMCG for the week (August 17, 2015 – August 21, 2015):
CNX FMCG index closed the week on negative note losing around 2.5%.
As we have mentioned last week that the index has formed a Doji pattern on weekly charts indicating the indecision among the traders about the further direction of the index and the index corrected to the levels of 20180 during the week.
The index has formed a Evening star pattern on weekly charts indicating the trend reversal in an uptrend. The index has to move above the levels of 21000 to negate this pattern.
The index has formed a Doji on daily charts indicating the exhaustion of selling pressure. If the index manages to close above the levels of 20500 the short term downtrend will reverse.
Support for the index lies in the zone of 20000 to 20200 where upward moving trend-line and 100 Daily SMA are positioned.
Resistance for the index lies in the zone of 20400 where 200 Daily SMA is positioned. If the index manages to close above the resistance zone of 20400 the index can move to the levels of 21000.
Broad range for the index in the coming week is seen from 19800 on downside to 20800 on upside.