Anand Rathi has identified two promising FMCG stocks—Hindustan Unilever (HUL) and ITC—as part of a strategic recommendation for short-term traders. The brokerage foresees potential gains of up to 11% within the next one to three months, supported by a combination of robust technical indicators and solid long-term fundamentals. This strategy is particularly appealing to investors seeking tactical opportunities in stable sectors like FMCG, which have shown resilience during market fluctuations.
Strategic Recommendations for FMCG Investors
Anand Rathi’s approach incorporates a unique "techno-funda" methodology, focusing on stocks with favorable technical setups and strong business foundations. Typically, the brokerage presents two high-conviction stock ideas monthly, with an ideal holding period of 30 to 90 days. This method aligns perfectly with investors looking to make calculated entries in less volatile sectors.
- Benefits of Margin Trading Facility (MTF):
- MTF allows traders to leverage their investments effectively.
- Enables better capital allocation without sacrificing quality.
Anand Rathi promotes momentum investing in fundamentally robust companies, aiming for a 1:2 risk-reward ratio. This disciplined trading approach helps investors manage risk while maximizing potential returns.
Hindustan Unilever (HUL): A Stock with Strong Fundamentals
Hindustan Unilever Ltd (HUL) has caught Anand Rathi’s attention due to its impressive technical indicators and sector resilience. The brokerage points out that HUL has successfully rebounded from a critical long-term support trendline, indicating renewed bullish momentum.
- Key Observations:
- Formation of multiple bottom patterns near the ₹2100 level suggests growing buying interest.
- A bullish breakout in the daily RSI reinforces the potential for an upward trend.
Anand Rathi recommends entering HUL between ₹2335 and ₹2275, with a stop loss set at ₹2100. The target price is projected at ₹2550 to ₹2600, creating an attractive risk-reward scenario. Given the current trading price of ₹2,330, this aligns seamlessly with the brokerage’s short-term investment strategy.
ITC: Momentum Signals Point to a Breakout
In addition to HUL, Anand Rathi expresses optimism about ITC Ltd, citing strong technical formations driven by volume and momentum. The stock has been consolidating within a range of ₹390 to ₹415, and recent trading sessions have shown significant volume-backed accumulation, signaling heightened investor interest.
- Technical Highlights for ITC:
- The appearance of a Marubozu-like bullish candle on April 7, 2025, indicates strong market conviction.
- The RSI remains above 45, suggesting ongoing internal strength.
Anand Rathi recommends buying ITC in the range of ₹410 to ₹420, with a stop loss at ₹380. Price targets are set at ₹460 and ₹465, offering a potential upside of approximately 11% from current levels. With ITC trading at ₹416, this setup presents a compelling opportunity for positional traders looking to capitalize on potential breakout formations in the defensive FMCG sector.
By focusing on these strategic recommendations, investors can navigate the FMCG landscape with confidence, leveraging both technical and fundamental insights.
