The rout on Dalal Streat continued for the fourth straight session with Nifty50 shedding over 345 points from the last closing on Thursday. It was trading at 17,419, down almost 1.9 per cent. Meanwhile, the 30-share BSE Sensex was trading at 58,406.15, down by 1230 points or 2.06 per cent.  

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Nifty50 has shaved-off over 1185 points from the all-time highs of 18,604.45.  

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However, technical analyst Nilesh Jain pulls out a sector despite the existing gloom. He sees an upside in FMCG stocks and reasons why this sector is a good candidate for grabbing the spotlight, going forward. 

Nifty FMCG index took cues from the trends in the overall market and was trading in the red. The index was down by almost 489 points or 1.3 per cent around 2:15 pm and was trading at 38,377.25. In the 15-share index, 12 stock declined around this time while only three advanced.  

Dabur India limited, Britannia Industries Limited and Emami Limited were the gainers in the pack. They were up 0.86 per cent, 0.84 per cent and 0.65 per cent respectively. 

Meanwhile, the biggest losers were Varun Beverages Limited, Radico Khaitan Limited, and ITC Limited. The stocks lost almost 3.64 per cent, 2.44 per cent and 2.44 per cent respectively. 

Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said that the Fast Moving Consumer Goods or FMCG sector has been a laggard and taken significant beating against its many peers. He said that there is an opportunity for investors in defensive sectors such as this and IT. He sees a pull back in in the Nifty FMCG index at levels around 39,000. It has a strong support at 37,800.  

The AVP picked three stocks - for buying or remaining invested for higher targets. 

Dabur: Buy| LTP: Rs 608| Target: Rs 640/650| Stop Loss: Rs 595| Upside 7%    

Dabur India shares were trading almost flat around this time on the NSE, albeit positively, at Rs 608.95. The stock has emerged from a symmetrical triangle formation breakout and an MACD (Moving Average Convergence Divergence) buy crossover – a momentum indicator, Jain said. Fresh long positions can be made in this stock at current levels, he added. Existing investors must hold this counter, he further said.  

HUL: Buy| LTP: Rs 2385| Target: Rs 2500/2600| Stop Loss: Rs 2300| Upside 9% 

Hindustan Unilever Limited is another stock Jain is bullish on, despite a wobbly stock markets. The stock was trading with a negative bias around this time, correcting by Rs 14 or 0.6 per cent from the Thursday closing price. The support is seen at Rs 2300 which must be taken as a stop loss, the AVP said. It is on a verge of a breakout, he further said, adding that the upside will open once that is attained. The right levels to buy this stock is Rs2350.   

Colgate Palmolive: Buy| LTP: Rs 1471| Target: Rs 1530/1560| Stop Loss: Rs 700| Upside 6% 

Buying at current levels is recommended, Jain said. The stock was trading down almost 0.3 per cent on the NSE around this time. The support is seen at Rs 1430. A pull back is expected in this stock as the stock has seen some correction over the last 3-4 trading sessions.