FMCG is considered as a defend sector in any pandemic situation and it proved in covid situation. FMCG hold firm in COVID. and the sentiment is too bullish among retailers but the index is not showing any strength and even after covid recovery FMCG is still under performing.
Technically we can see RSI divergence in FMCG index and also on some weightage stock like HUL, Dabur, Nestle. Especially Dabur and HUL is forming a ending diagonal patter with divergence in RSI on weakly chart. we should be more cautious on these stocks.
As an investor we should have an eye on these stocks some good opportunity is on the way.