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Emami, IPCA Labs: 5 defensive stocks you can buy in the current market

With a “Golden Cross” formation on the daily chart, this counter is set to rally towards Rs 420 and Rs 450 levels.
In Thursday's broad-based sell-off, all the sectoral indices on the NSE were trading in the red. Nifty Pharma index was down 1.2 per cent, while the Nifty FMCG index traded nearly 1 per cent lower at 29,088 levels. Thus far in the week, the Nifty Pharma index has slipped 5 per cent, while the Nifty FMCG has slipped nearly 4 per cent. In comparison, the benchmark Nifty50 index has slipped 3 per cent, data show.

Despite the market correction, there are some stocks from the FMCG and pharma sectors - considered classic defensive plays - that can be bought from a medium-term perspective.

Emami Ltd (EMAMI): With a “Golden Cross” formation on the daily chart, this counter is set to rally towards Rs 420 and then Rs 450 levels from a medium-term perspective. The support on a closing basis comes in at Rs 340. Till the price trades decisively above this level, the upside bias may see added interest from the market participants. The 100-day moving average (DMA) is progressing towards a positive crossover with 200-DMA, indicating that the underlying mementum is likely to stay firm. CLICK HERE FOR THE CHART
 

Godrej Agrovet Limited (GODREJAGRO): The weekly chart clearly demonstrates the intensity of price to absorb the selling pressure in the range of Rs 520 to Rs 500 levels. Till the price trades above the 100-weekly moving average (WMA) placed at Rs 468.30 levels, the upside bias should prevail with the strong intention of a rebound. CLICK HERE FOR THE CHART

IPCA Laboratories Limited (IPCALAB): The stock seems resilient and should not breach the medium-term support of Rs 1,850 levels. The counter is witnessing a buying accumulation in the range of Rs 2,000 to Rs 1,900 levels. This stays as an immediate support for a reversal towards Rs 2,200 levels. CLICK HERE FOR THE CHART

  

Natco Pharma Limited (NATCOPHARMA): A “Cup and Handle pattern” on the weekly chart indicates a rally towards Rs 1,000 levels in the near-term. This provides opportunities for short-term traders by ascertaining the momentum and volatility. The price has not breached 50-DMA recently and is currently placed at Rs 788, which has become Natco Pharma's support level. CLICK HERE FOR THE CHART

 

Ajanta Pharma Limited (AJANTPHARM): The stock has recovered from around Rs 1,440 levels and witnessed follow-up buying around Rs 1,500. This level has held decisively, which shows underlying strength. The stock has seen buying momentum on every decline. The relative strength index (RSI) is trading with a positive crossover and the moving average convergence divergence (MACD) is in the process of crossing the zero line upward. All these reflect a positive sentiment. The trend indicates a rally towards Rs 1,650 levels in the medium-term. CLICK HERE FOR THE CHART

 



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