A Study on Technical Analaysis of Indian FMCG Sector

Abstract

The Indian fast-moving consumer goods (FMCG) sector plays a crucial role in the country's economy, experiencing strong growth and catering to the needs of its vast population. This research aims to conduct a close examination of the Indian FMCG sector using technical analysis techniques in order to identify patterns, trends, and potential investment opportunities. Using a quantitative approach, this study employs various technical indicators and chart patterns to assess the price and volume movements of FMCG sector stocks listed on Indian stock exchanges. Historical price data and trading volumes are collected and analyzed to identify recurring patterns and trends that can assist investors in making well-informed decisions. The study covers a time period between 26/04/2021 to 02/06/2021, allowing for a comprehensive evaluation of the FMCG sector's performance and behaviour. Few technical analysis tools such as moving averages convergence and divergence (MACD), relative strength index (RSI), on balance volume (OBV), and trendlines are utilized. By applying these techniques, the study aims to identify potential signals for buying and selling, levels of support and resistance, and price targets within the Indian FMCG sector. Additionally, the research explores the impact of market trends, economic factors, and industry-specific events on the sector's performance. The findings of this study contribute to the existing knowledge in technical analysis and provide valuable insights for investors and traders interested in the Indian FMCG sector. The results enhance understanding of the sector's price movements, volatility, and potential investment opportunities, enabling market participants to develop effective trading strategies and risk management approaches. It is important to note that this study solely focuses on the technical analysis of the Indian FMCG sector and does not consider fundamental analysis or qualitative factors that may influence investment decisions. Therefore, readers are encouraged to combine the findings of this study with additional research and analysis before making investment choices.