In a recent interview with CNBC-TV18, Soni Patnaik, a representative from JM Financial Services, shared her expert insights into the current state of the pharmaceutical and fast-moving consumer goods (FMCG) sectors.

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Soni Patnaik began by emphasizing the promising momentum within the pharmaceutical sector. She noted that the sector had shown significant strength recently, with long build-up positions signaling a positive trend.

One of Patnaik's top picks in the pharmaceutical sector is Aurobindo Pharma. She highlighted that after a considerable decline, the stock had been consolidating, and she had observed it breaking out of its consolidation range. This breakout, according to Patnaik, indicates a potential move towards the target range of Rs 900-920. She advised investors to set a stop loss at Rs 845 to manage their risk effectively.

The flat performance of Aurobindo Pharma over the past month may present a valuable entry point for investors seeking to capitalize on its future growth potential.

Shifting her focus to the FMCG sector, she recommended ITC as an attractive pick. While the FMCG sector is known for being a slow mover, she explained that ITC stands out due to its consolidation at favorable risk-reward ratios. This consolidation suggests that ITC might be gearing up for a substantial move.

To make the most of this opportunity, Soni suggested that investors watch for ITC to maintain a level between Rs 440 to Rs 445. A stop loss at Rs 435 can be a prudent measure to mitigate risk. If the stock continues to perform as expected, Soni believes it has the potential to reach levels of Rs 470 to Rs 475, offering an attractive return on investment.

It's worth noting that ITC's shares had experienced a decline of over 2 percent in the last month.

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First Published:Sept 6, 2023 11:35 AM IST