Consumer Stocks: Consumer stocks may offer silver lining amid Nifty low – News Air Insight

The Nifty wrapped up the previous month on a weak note as global uncertainties weighed on sentiment, leaving most sectors under pressure. Analysts, however, say the consumption pack is emerging as a rare bright spot amid the gloom, with hopes pinned on the upcoming GST slab announcements. Here’s a look at select stock futures with higher-than-average rollovers into the September series and what their charts signal for the near term.

BULLISH BETS

COLGATE-PALMOLIVE (I)
CMP (Rs ): 2,328.6 Change in Open Interest (September Series): -9.54% Change in Price (September Series): 2.91% The FMCG pack is showing noticeable resilience, with ColgatePalmolive moving in tandem, said Ajit Mishra, senior vice president, research, Religare Broking.

The combination of rising price and volumes alongside a decline in open interest points to short covering. “The stock has rebounded sharply after testing its major support zone around the Rs 2,150 level and has also reclaimed its short-term moving average, the 20-day exponential moving average (DEMA),” he said. Mishra suggests traders buy the stock for a target of Rs 2,490, with a stop loss at Rs 2,270.
CG POWER AND INDUSTRIAL SOLUTIONS
CMP (Rs): 694 Change in Open Interest (September Series): 5.4% Change in Price (September Series): 4.5%

The rise in price and open interest signals bullish momentum after the company announced a Rs 7,600-crore OSAT (outsourced semiconductor assembly and test) facility rollout over five years. Vipin Kumar, assistant vice president of derivatives and technical research at Globe Capital Market said traders can buy its September futures on a dip around the Rs 690–Rs 680 range for a target price of Rs 740 with a stop loss at Rs 658.

VOLTAS
CMP (Rs ): 1,370 Change in Open Interest (September Series): 3.1% Change in Price (September Series): 0.8%

Buying interest in consumer durables is picking up despite the broader market’s corrective phase, said Mishra. The interest could be driven by the government’s consumption push through income-tax slab rationalisation and anticipated GST rejig.

Voltas has rebounded sharply after retesting its previous swing low near Rs 1,190 and has formed a fresh buying pivot around its long-term moving average. The price action, coupled with rising open interest, signals a potential reversal, he added. Traders may consider fresh long positions with a target of Rs 1,420 and a stop loss at Rs 1,320.

BEARISH BETS
KFIN TECHNOLOGIES
CMP (Rs ): 1,025 Change in Open Interest (September Series): 17.8% Change in Price (September Series): -2.4%

A decline in price along with a sharp spike in open interest suggests a short buildup in the stock. “The Nifty Capital Market index has given a breakdown in the last week and thereafter witnessed a sharp correction. Currently, the stock is trading below its crucial moving averages,” said Sudeep Shah, vice president and head of technical and derivative research, SBI Securities.

Shah said its daily RSI and stochastic are in bearish territory and in falling mode. “Hence, we believe the stock is likely to continue its southward journey and test the level of Rs 970 in the next week with a stop loss at Rs 1,060,” he said.

AU SMALL FIN BANK
CMP (Rs): 718.35 Change in Open Interest (September Series): -1.2% Change in Price (September Series): -1.5%

The bank’s stock shed 1.21% of open interest in the September contract as long unwinding took place in the last trading session of August, said Kumar. “Its current chart structure is indicating a possible underperformance in the near term till it is trading below Rs 765 levels,” he said. Traders can sell their September futures in the Rs 728–Rs 735 range, for a target of Rs 690–Rs 660 with a stop loss at Rs 765.