Bullish momentum: Godrej Consumer Products

The stock of GODREJCP is extremely bullish and has surged about 5%.

Godrej Consumer Products Limited is a company, which is engaged in the manufacture of personal and household care products. It is a largecap company with a market capitalization of about Rs 80000 crore. It is one of the sector leaders and commands a good market share. The stock is in limelight due to its recent run-up.

The stock of GODREJCP is extremely bullish and has surged about 5%. Since its recent swing low of Rs 667.10, the stock has gained over 20% in just nine trading sessions, thus displaying strong bullish momentum. Moreover, after today’s strong price action, the stock has crossed above its priors wing high of Rs 784.40. The stock has also recorded above-average volume today, which is greater than the 10-day, 30-day and 50-day average volume.

The 14-period daily RSI is well above 60 and indicates strong strength in the stock, whereas the MACD histogram is rising steadily above the prior highs. Also, the On Balance Volume (OBV) has indicated strong strength in the stock from volume’s point of view. Moreover, the stock trades above all the key short term moving averages. The other momentum oscillators and technical indicators also point out the bullishness.

Despite the strong movement lately, it is still well below its all-time high level of Rs 1138, which indicates that the stock is not overbought. Also, it has outperformed the other FMCG peers in recent days. The stock is well off from its lows and is expected to trade higher in the short to medium term. With the momentum that it possesses, the stock is expected to test the levels of Rs 850, which is its 100-DMA level, followed by Rs 870 in the short to medium term. Traders can expect decent profit from this stock in near term as technical analysis validate the point.