GodrejCP gives channel breakout, surges 2.5 per cent

Fourth largest FMCG company by its weightage in the Nifty FMCG index, Godrej Consumer Properties has just given an upward sloping channel pattern breakout at 1015 level. GodrejCP that holds 5 per cent weightage in the index surged as much as 2.5 per cent pulling FMCG index marginally up by 0.6 per cent .

After hitting its all-time high at 1082 level on July 31, the stock had witnessed a sharp fall of nearly 10 per cent . Thereafter, the stock traded in a gradual upward sloping channel as the stock’s price movement and oscillators had witnessed a negative divergence. However, the stock witnessed 14-period RSI trendline breakout along with price channel breakout on Monday. The stock had attempted a breakout on November 28, but could not sustain and closed below the channel.

Going forward, we can expect some more optimism in the stock where it holds the potential to break out of its all-time high levels. Fundamentally, the September quarter results reported robust topline and bottomline with 15 per cent and 60 per cent growth, respectively, uplifting TTM performance higher than the FY17 results.