FMCG Sector in Bearish Grip: Short Sellers Eyes on Colpal

◉ FMCG Sector Overview CNXFMCG
● The Nifty FMCG index appears to be in a bearish phase, having formed a bearish engulfing pattern near a key support level.
● This suggests a potential breach of the support level in the near term.

Given this scenario, there may be an opportunity to consider short positions in select stocks within the sector.

◉ Colgate Palmolive Technical Analysis COLPAL
● On the weekly chart, Colgate Palmolive has developed a Head and Shoulders pattern, a classic bearish reversal formation.
● The stock is currently hovering near the neckline, and a breach of this level appears imminent, which could signal further downside.

◉ OI Data Analysis
● Open interest analysis reveals, significant long unwinding during the recent trading session, reflecting a shift in investor sentiment toward the negative side. This further supports the bearish outlook for the stock.
● The option chain data indicates that the 2,600 level could act as an immediate support, as it has the highest concentration of put writers. However, if this level is breached, the stock could see additional downward momentum.