EquityPandit’s Outlook for CNX FMCG for the week (October 12, 2015 – October 16, 2015):
CNX FMCG index closed the week on positive note gaining around 2.5%.
As we have mentioned last week that the index has formed a Shooting Star pattern on daily charts on 01/10/2015 around the resistance zone of 20300. Resistance for the index lies in the zone of 20300 to 20500 above which the index can move to the levels of 21000. During the week the index manages to hit a high of 20767 and close the week around the levels of 20479.
The index has been forming the bearish pattern on daily charts. Support for the index lies in the zone of 20000 to 20200 where 100 & 200 Daily SMA are positioned. If the index closes below the levels of 20000 then the index can drift to the levels of 19300 where long term trend-line support for the index is lying.
Resistance for the index lies in the zone of 20800 to 21000 from where the index has sold off in the month of August – 2015. If the index manages to close above the levels of 21000 then the index will break out of the range of 19000 to 21000 in which the index is moving since last 5 months.
Broad range for the index in the coming week is seen from 19800 to 20000 on downside to 20800 to 21000 on upside.