Markets continue roller coaster ride; FMCG lifts, Energy drags

Equity markets yet again ended in doldrums on Tuesday, repeating what it has been doing for the past four to five trading sessions. FMCG sector gained more than a per cent, while energy sector shedding 1.4 per cent, which led to a roller-coaster ride in the markets. Ultimately, the benchmark indices closed flat where prices remain within the triangle pattern.

FMCG index gained 1 per cent where the two giants, ITC and HUL remained positive with marginal gains. The other two majors Britannia and Godrej Consumer Products, which hold 6.4 and 5.3 per cent in the index, gained 1.2 and 2.4 per cent, respectively. However, United Spirits remained the top gainer with 3.6 per cent gain.

Nifty FMCG index has been struggling at peak levels where the index price is trading in a Channel pattern. Recently, it reversed from its trendline support on June 22 which was also its 50-day EMA support and thereby bounced back on Tuesday to head northwards.

On the contrary, Energy index tumbled 1.4 per cent led by downfall in Reliance Industries. Reliance which holds 52 per cent weightage in Energy index and 7.5 in Nifty50 fell for the third day in a row on Tuesday, after hitting all-time high levels. Yet it can be termed as a pullback after a multiple resistance breakout near 985-1,005 levels. Power Grid holding 7.7 per cent in the index fell 1 per cent.

Nifty Energy index closed below its 50 and 100-day EMA level and fell for the straight third day after attempting a breakout at 14,090-14,150 levels, but could not sustain on the same on a closing basis.