Anand Rathi has recommended two high-conviction FMCG stocks—Hindustan Unilever (HUL) and ITC—as part of its short-term strategy aimed at positional traders. The brokerage believes these large-cap names offer up to 11 percent upside in the next one to three months, backed by a strong blend of technical indicators and long-term fundamental support.
The firm’s strategy combines a “techno-funda” approach, highlighting stocks that show favourable technical setups but are also backed by robust business models. Anand Rathi typically shares two such ideas per month, each with a holding period of 30 to 90 days. The approach suits investors looking for tactical entries in relatively stable sectors like FMCG, which continue to demonstrate resilience amid broader market volatility.
Further strengthening the proposition is the use of Margin Trading Facility (MTF), which enables investors to leverage their portfolios efficiently. For FMCG-focused investors, this means better capital deployment without compromising on quality. Anand Rathi also emphasizes momentum investing in fundamentally strong names with a risk-reward profile of 1:2, offering a balanced yet disciplined trading approach.
Hindustan Unilever (HUL): Technically Rebounding, Fundamentally Sound
Anand Rathi remains optimistic on Hindustan Unilever Ltd (HUL), citing both technical resilience and sectoral strength as reasons to accumulate the stock. The brokerage highlighted that the broader FMCG pack has been a defensive outperformer amid market uncertainty, and HUL in particular has emerged as a technically attractive candidate.
The stock has rebounded from its long-term rising trendline support, a key indicator of renewed strength. Moreover, the formation of multiple bottom patterns around the 2100 level, coupled with a bullish breakout in the daily RSI, reinforces the idea of a sustained uptrend. These patterns suggest that buying interest is building around key support zones.
Anand Rathi has advised entering the stock in the 2335–2275 range, with a stop loss at 2100. The brokerage has projected upside targets of 2550 and 2600, offering a compelling risk-reward equation. With the current market price at ₹2,330, the trade setup aligns well with the firm’s short-term strategy framework.
This call on HUL also reflects Anand Rathi’s broader view that large-cap FMCG names offer an attractive combination of defensive strength and technical upside, especially in choppy market conditions.
ITC: Volume-Driven Momentum Hints at Breakout
In addition to HUL, Anand Rathi has also turned bullish on ITC Ltd, citing a promising technical formation driven by volume and momentum indicators. According to the brokerage, ITC has been consolidating in the 390–415 range, and recent sessions have shown volume-backed accumulation, indicating increasing investor interest at these levels.
The standout development in ITC’s chart is the appearance of a Marubozu-like bullish candle on April 7, 2025, formed on the back of the highest recent volume. This is typically seen as a signal of conviction and suggests a near-term breakout could be imminent. The RSI remains above 45, pointing to sustained internal strength in the stock’s price action.
Based on this analysis, Anand Rathi recommended buying ITC in the 410–420 range, with a stop loss at 380. The firm has set price targets of 460 and 465, which translates to a potential upside of around 11 percent from current levels. With ITC trading at ₹416, the setup presents an opportunity for positional traders to capitalize on a breakout formation within a defensive sector.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
