Nifty FMCG bounces from 200-day EMA

The index after touching 200-day EMA bounces back and formed bullish candle on Thursday and also managed to open with upside gap on Friday, which indicates bulls are in a dominant position. This movement can be attributed to the budget's focus on farm and rural sector, and the fact that rural income is a major factor driving FMCG sales. 

The NIFTY FMCG Index is designed to reflect the behavior of FMCGs Indian companies from (Fast Moving Consumer Goods) (FMCG) sector. It includes companies that deals with those goods and products, which are non-durable, mass consumption products and available off the shelf. 

The index after touching 200-day EMA bounces back and formed bullish candle on Thursday and also managed to open with upside gap on Friday, which indicates bulls were in a dominant position. Among the constituents, Jubilant Foodworks and Marico are the top gainers, while on the flip side, Godrej Consumer Products are the top loser on Friday. 

Technically, the index has strong support placed in the region of 29,800-29,900 as it is the confluence of 100-day EMA and opening gap (29,800-29,936) created on February 1, 2019, failure to hold this support would lead to further correction up to the level of 29,500. While on the upside 30,500-30,600 will be act as strong resistance as downward sloping trendline is placed in that region. Among the momentum indicators, the 14-period day RSI is quoting around 48.85, and it has recently given positive crossover, which is positive for index.