In a recent appearance on CNBC-TV18, Jay Thakkar, an analyst from Sharekhan, shared his insights on the current market conditions and provided valuable recommendations for short-term gains. Thakkar shed light on two prominent stocks, Hindustan Unilever Ltd (HUL) and Dr Reddy’s Laboratories (DRL).

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HUL, a significant player in the FMCG sector, has been experiencing a decline over the past few trading weeks. However, according to Jay Thakkar, the stock has found a solid footing by establishing a short-term base in the price range of Rs 2,450-2,500. This level is expected to play a pivotal role as strong support in the upcoming trading sessions.

The notable development is the shift in momentum towards the positive side, signaling potential gains for investors. He recommended buying HUL with a short-term target of Rs 2,575-2,600.

To mitigate risks, he advised setting a stop loss below Rs 2,470, ensuring a protective buffer for traders.

In the pharmaceutical sector, he foresees a sharp rebound in Dr Reddy’s Laboratories’ (DRL) value, driven by short-covering moves. The target for DRL stands at Rs 5,600-5,670, presenting a lucrative opportunity for investors.

In the near term, Rs 5,400 is identified as a critical support level, offering a safety net for those considering an investment in DRL.

Jay Thakkar's analysis suggested that the pharma giant is well-positioned to capitalize on the favorable market conditions, potentially bringing substantial gains to investors.

Both HUL and DRL have witnessed declines exceeding 1% over the past month, making them intriguing options for investors looking for potential short-term gains.

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