At a time when there is heightened volatility in the market as investors are treading cautiously ahead of the poll results on June 4, healthcare as a sector comprising companies from the pharma, hospitals, diagnostic labs, and medical devices segment has emerged as a strong defence, according to independent investor and trader Praveen Kumar.
"As we move towards the electoral mandate, volatility spreads its wings across the board,” said Kumar. Incidentally, India VIX, the fear gauge, is currently trading around 21.50 levels.
“Although the market is trading near its all-time high, sentiments are fearful as everyone awaits the results of one of the biggest events in the country, directly impacting the market and economy. Q4 earnings have shown a mixed bag performance so far, with very few sectors posting good results overall. The healthcare sector is one such sector,” he added.
Nifty HealthCare index displays box breakout on the daily chart
"Nifty HealthCare index is moving in a tight range of 1000 points & technical indicators are suggesting a box breakout on daily charts for a target of 13500+ in the near term, " Kumar said.
Kumar's Top picks: Lupin, Polymedicure, Windlas Biotech and Caplin Point
"In the largecap space Lupin is one such stock which is expected to do well in short term while in Mid & Smallcap Space some names like Poly Medicure, Windlas Biotech, Caplin Point where the management has guided good growth outlook and are expected to do well in the near term," he said.
Kumar shares his insights into the key supports and resistance levels for these stocks:
Caplin Point:
Consolidation in 1250-1600 range
Key support 1180-1250
Resistance 1550-1600
Above 1600 technical Targets are 1950/2000+
Windlas Biotech
Broken out above 590 and heading towards 690+ Key support 580-590.
Lupin
Consolidating in box range from last 4 months
1500 is a support while 1700 is a resistance
Above 1700 heading towards 2000+
Polymedicure
Broken above 400 points range after long
Technical Targets are 1950/2100+
Key support zone 1650-1700
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
