Over the past eight trading sessions, the Nifty 500 index has fallen more than 3.67%, mostly due to global concerns regarding developments in U.S. tariffs. Profit booking occurred in the auto and banking sectors, while the pharma & IT sectors continued to face selling pressure. Retail & e-commerce stocks are becoming increasingly attractive as the holiday season approaches. Stocks like Adiya Birla Fashion & FSN E-commerce (Nykaa) are benefiting from strong consumer spending during Diwali, & current technical charts suggest favourable risk-reward setups for traders and investors.
Aditya Birla Fashion: Bullish reversal breakout
The stock started its decline in September 2024 from an all-time high peak of ₹130, eventually losing 47% of its value in nine months. Starting June 2025, it started trading with support of a rising trendline, and from September 2025, it has given a breakout from a rounding bottom.
The price action within the range depicted a higher top and higher bottom, which is an early indicator of a reversal. The stock is currently trading above its 100-day moving averages, which is considered the beginning of an uptrend. On top of that, the 14-period RSI is entering into bullish territory, with bullish divergence. All these factors imply that the stock is setting up to move upwards in the near future.
Key Aditya Birla Fashion’s potential signs of reversal
- Bullish Rounding Bottom patterns: Stock has given breakout and now successfully rested its rounding bottom pattern breakout.
- 100 Day Moving Average: Stock price is trading above its 100DMA, signalling the onset of an uptrend.
- Breakout with Volume: In thecurrent chart setup we can see price is rising with rise in volume, which indicates bullish sentiment.
- RSI & Price Direction: 14 period RSI is in the above 50 zone and showing that the stock is in strong bullish momentum.
- Falling Trendline: Stock price also at verge of breaking out of its falling trendline.
FSN E-Commerce: Bullish continue breakout
The FSN E-Commerce’s share started dropping from ₹230 to ₹155 over August 2024 to March 2025. The decline was subsequently reversed, and the shares have since strongly appreciated from ₹155 to ₹240, an increase of 61% between August and September 2025.
After that, we can see that the price has formed a cup and handle pattern. The stock price is trading above important resistance levels and above its 100 day moving average. the 14 period RSI is also in Bullish momentum, which implies the shares are likely to keep the bullish trend intact. FSN E-Commerce has a positive chart setup for price appreciation in the short term, given the current technical chart and indicators setup.
FSN E-Commerce’s stock reversal analysis
- Cup and handle pattern breakouts: Price has given breakout from cup & handle pattern and successfully retested.
- Volume Surge Confirming the Breakout: The fall in price coincided with decline in volume and an increase in price has come with a rise in volume, which shows strong investor interest.
- 100 Day Moving Average: Stock price is trading above its 100 DMA. That means, the stock is on an upward trend.
- RSI & Price Direction: 14 period RSI is above 50 zone anf showing that the stock is in strong bullish momentum.
Final Take
Technically and structurally, Indian stocks are in a very good position ahead of the festival season.
Retail and FMCG stocks in India are demonstrating strong bullish momentum. With increasing trading volumes, both Aditya Birla Fashion and FSN E-Commerce have surpassed key moving averages, suggesting robust technical performance. RSI levels indicate healthy trends and do not show overbought conditions. Strong order books and favorable sector trends support the breakout potential for both stocks.
Disclaimer:
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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