Nestle India, HUL, Britannia Industries: How to trade these FMCG shares

Domestic equity indices closed the financial year 2022-23 on a high note on Friday on supportive global cues. The BSE's Sensex climbed 1,030 points, or 1.78 per cent, to 58,991.52. The NSE Nifty rallied 279.05 points, or 1.63 per cent, to 17,359.75.

Fast moving consumer goods (FMCG) stocks buzzed the most during the session. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

Nestle India | Buy | Target Price: Rs 20,840-21,340 | Stop loss: Rs 19,100
Nestle India has given a strong breakout with higher volumes after eight days of consolidation on the daily chart. Further, the stock has started trading above its 200-day SMA of Rs 19,175 and closed well above it on Friday. The momentum indicator viz RSI is positively poised. Combining the above parameters, the momentum seems to be on the upside. Hence, one can buy the stock at current levels with a stop loss of Rs 19,100 and a target of Rs 20,840-21,340 levels in the next couple of weeks.

Britannia Industries | Buy | Target Price: Rs 4,486-4,610 | Stop loss: Rs 4,156
Britannia Industries is showing higher relative strength, which indicates that the stock is outperforming the benchmark indices. The momentum indicator viz RSI has made a double bottom at the 35 reading and is on the verge to break the 50 reading. Even, the MACD Histogram indicator has turned positive. This suggests that momentum is likely to continue on the upside. Hence, one can buy at current prices with a stop loss of Rs 4,156 for a target of Rs 4,486-4,610 levels in the next couple of weeks.

Hindustan Unilever | Buy | Target Price: Rs 2,720-2,800 | Stop loss: Rs 2,480

Hindustan Unilever gave a breakout on March 29 after eight days of consolidation. It closed marginally above its 200-day SMA of Rs 2,549 on Friday. The momentum indicator viz RSI and MACD are positively poised. This suggests that the momentum on the upside is likely to continue. Hence, one can buy at current levels with a stop loss of Rs 2,480 for a target of Rs 2,720 -2800 levels in the next couple of weeks.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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