4 Pharma Stocks CA Rudramurthy is Bullish on Amidst Bank Nifty’s Resistance at 50,000

• Nifty: Likely to trade between 22,000 and 23,000. No significant upward movement expected soon.
• Bank Nifty: Likely to face strong resistance around 50,000. A clear breakout above 50,000 in Bank Nifty and 23,000 in Nifty is required for further gains. Until then, expect any rise to be met with selling pressure.

Election Volatility:

• Market structure changed after the recent political results.
• Valuations were high even before the election outcomes, and post-results, we saw a surge followed by a correction.
• In the very short term, expect market sell-offs on any rise.
• Advice: Wait and watch for the next week, especially if you’re new to investing. Look for stock-specific and sector-specific opportunities.

Sector Views

FMCG, Pharma, IT, and Rural Development:

• FMCG, Pharma, and IT: Expected to perform well. Focus on sectors related to rural development and financing.
• PSU Stocks: After a significant rally over the past two years, it’s time to book profits in public sector units (PSUs) like REC, PFC, BHEL, and BEL. They might face short-term corrections.

Stock Recommendations

Rural Theme and FMCG:

• Hindustan Unilever: Strong outlook.
• Dabur, Colgate, ITC: Solid picks within the FMCG sector.

Metals:

• Tata Steel, Hindalco, Jindal Steel: Promising picks in the metals sector.

Rural Financing and Private Sector:

• Bandhan Bank: Attractive at current levels (~190-192), with potential targets of 220-230.
• L&T Finance: Looks good around 157-158.

Pharma:

• Biocon, Zydus Life, Sun Pharma, Dr. Reddy’s: Recommended picks within the pharma sector.

PSU Stocks Advice

Public Sector Units (PSUs):

• PSU Banks: Consider buying on dips, especially SBI.
• Oil Marketing Companies: BPCL, HPCL could be good picks.

Profit Booking:

• Consider booking profits on PSUs that have already rallied significantly. Focus only on selective PSU banks and oil marketing companies for potential gains.

Summary

• Short-term Strategy: Focus on selective stocks and sectors like FMCG, Pharma, IT, and metals. Be cautious with PSUs.
• Medium to Long-term: India’s growth story remains strong. Expect market volatility due to political and global changes, so choose investments carefully.