Though there are a few stocks, which have signalled a sell in the last week, and the market breadth is slightly weak, buying has been emerging at lower levels which usually happens in a bull market. Thus though the indices may drop to an intermediate downtrend, it is now unlikely to break its earlier intermediate bottom which it had attained in the last month. Also a majority of the stock which have gone into an intermediate downtrend in the last week are still well above their earlier intermediate bottom and the next intermediate rise in the market will mean a higher intermediate bottom which also means that the intermediate trend of the market will be up.

I had looked at the multinational personalcare sector a few weeks back wherein I had mentioned that there had been a rise in the activity in many stocks. A few stocks have gone into a major uptrend and the remaining will go into a major uptrend soon.

There has been a rise in the activity in the FMCG sector as more stocks and trading volumes in this sector has also improved. Thus investors can pick up long positions in this sector.

Bausch & Lomb
Bausch & Lomb has exhibited a higher intermediate bottom and hence the major trend of the stock is up. The stock will have to close above its earlier intermediate top of 49.95, which it has already done while writing this article, and investors can pick up long positions in the stock. The recent rise in the stock has been accompanies with a rise in the volume, which is a very bullish sign. However, as the stock is currently trading below its falling 30 WMA, it will have to face some selling pressure at higher levels.But as the major trend of the stock is up, higher levels in the stock will be seen in the coming year and long-positions can be taken up investors.

Colgate
Colgate is already in a major uptrend as the stock has exhibited ascending intermediate tops and bottoms. In the earlier intermediate rise, the stock made a high of 195 and after that the stock has pulled back towards its 30 WMA.

This is the right time to get into the stock. The intermediate trend of the stock is down and will turn up on a close above 184. As the major trend of the stock is up, the next intermediate rise will result in higher values by the stock. The relative strength line for the stock is bullish and is above its trigger line, which means that the stock is performing better than the indices.

Indian Shaving
Indian Shaving was in a major uptrend since 1996 but since January 2000, the stock has dropped below its earlier major bottoms and is in a strong major downtrend.

The stock has been exhibiting descending intermediate tops and bottoms and the relative strength line for the stock is bearish.

The relative strength line is well below its trigger line, which indicates that the stock will take quite some time to bottom out.

Though there is an improvement in the activity in the FMCG stocks, investors must stay away from this stock.

Procter & Gamble
Procter & Gamble was in a strong major downtrend since mid-1999. The stock made a big base around the 525 level and moved up sharply in the current intermediate rise. The stock is facing a strong resistance at the 30 WMA and is in an intermediate downtrend. However a close above Rs 705 will take the stock into a fresh intermediate uptrend and this will result in the stock exhibiting rising intermediate bottoms, which also means that the major trend is up. This will be confirmed once the stock crosses its earlier intermediate top of 765 in the next intermediate rise. Investors can pick up the stock now or wait for the stock to go into a fresh intermediate uptrend. The next intermediate uptrend will not only take the stock into a major uptrend but will also turn the relative strength line up.

Reckitt & Colman
Reckitt & Colman is in the process of bottoming out as the stock has been staying below its 30 WMA and has been moving between 200 and the 30 WMA. This process of bottoming could take quite some time and investors must not get into the stock at this stage. Stay away from the stock and get into it when the time is ripe i.e. when the bottoming is over and the stock goes into a strong uptrend with a rise in volume. It could also be picked up when the stock moves up and then pulls back towards its 30 WMA. This the safest way for the investors to purchase.