Best FMCG stocks to buy today as recommended by expert Raja Venkatraman

Despite these challenges, rural markets showed signs of steady recovery, buoyed by easing inflation, increased government spending, and higher minimum support prices (MSPs) for key crops. This rural resilience helped cushion the overall topline, though most companies reported only low single-digit volume growth. Gross margins remained under pressure due to elevated input costs, especially for commodities like palm oil and other agri-ingredients.

Also Read: For FMCG Inc., the holy grail of volume growth is in sight

Navigating Current Headwinds

FMCG companies are adopting a cautious “wait and watch" approach, focusing on cost optimization and selective price hikes to protect margins. While EBITDA margin expansion remains limited, firms are banking on a favorable monsoon, potential rate cuts, and improved rural sentiment to drive recovery in the coming quarters.

Recent Market Trends

In the past few weeks, the sector has shown early signs of stabilization. Ecommerce continues to be a bright spot, with major players like Hindustan Unilever and Nestlé India reporting strong growth in online sales. Retail giants such as Reliance Retail have also posted robust Q4 numbers, with a 30.4% rise in net profit, driven by operational efficiencies and digital investments.

Also Read: HUL, Nestle lag as FMCG volumes stay weak—what could drive a 2025 rebound? 

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

Buy DMART (Current price ₹4300.30)

• Why DMart is recommended: This stock moved swiftly as it managed to breakout of the consolidation zone around 4225 region. The strong trends in FMCG continues to fuel more upside and this counter with its rounding pattern and long body candle signals more upside. With strong bullish trends emerging one can consider possibility of the trend to continue next week. Look to go long on dips near 4230 with stop below 4200 for a rise to 4400.
• Key metrics: P/E: 95.81; 52-week high: ₹5484; Volume: 1.01 M
• Technical analysis: Support at ₹4050, resistance at ₹4900.
• Risk factors: Increased competition, particularly from the rise of quick commerce, margin pressures due to rising costs and slower discretionary demand recovery.
• Buy: CMP and dips to ₹4225.
• Target price: ₹4600-4725 in 1 month.
• Stop loss: ₹4190.

Buy TRENT (Current price: ₹5869.40)

• Why Trent is recommended: Trent posted strong results and furled a strong upside in the last few days. The prices have been steadily making a higher low on positive tailwinds that are fuelling some steady upside. The inclusion in Sensex added some additional tailwinds helping  the trends to head higher doing well in the recent months. We can observe that there are sizeable volumes building up suggesting that the prices could now travel to the next resistance zone around 6500. The demand at lower levels and a nice long body bullish candle does suggest more upside in the coming sessions.
• Key metrics: P/E: 130.23; 52-week high: ₹8345.85; Volume: 6.81M
• Technical analysis: Support at ₹5400, resistance at ₹7000.
• Risk factors: Regulatory changes, intellectual property issues, competition from generic drugs, supply chain disruptions, and cybersecurity threats.
• Buy: CMP and dips to ₹341.
• Target price: ₹6350-6500 in 1 month.
• Stop loss: ₹5650.

Buy TITAN (Current price ₹3519)

• Why Titan is recommended: Titan is showing some steady progress and the brief correction seen since mid of May  indicating that the trends are firmly hinting at some potential upside in the coming days. The steady follow-through seen on Friday with a positive crossover as per Ichimoku TS & KS lines in lower timeframes are hinting at possible upward drift.
• Key metrics: P/E: 40.34, 52-week high: ₹647.65, Volume: 2.94M
• Technical analysis: Support at ₹3350, resistance at ₹3750.
• Risk factors: Regulatory changes, slowdown in growth and significant rise in gold prices
• Buy: CMP and dips to ₹3400.
• Target price: ₹3750-3900 in 1 month.
• Stop loss: ₹3375.

Conclusion

• In short, while urban demand remains a drag, the sector is holding its ground through rural strength, digital acceleration, and strategic cost management. The next few months will be pivotal in determining whether this resilience can translate into a broader recovery. 

Outlook for Trading 

The Nifty and Sensex tested the recent highs yet again along with many other sector indices showing some recovery. In fact, the small and midcap indices are showing some renewed enthusiasm. It is only the Bank Nifty and IT indices are still playing catchup. The Nifty took time to make the grade mainly owing to the fact that the big weights in the index are banking, IT and Fmcg names and most of they were slow to respond.

   

The trading of last week looks pretty solid as a continuation thrust higher. Over the June series as markets were trying to decode the sentiment Vix has begun to cool-off around 22% and a gap is anticipated on Monday. A clearer resolution to the war scenario will certainly lead to an upside gap and then it will all be about courage to buy higher and squeeze of whatever shorts are left in the system. On the other hand, a downside gap will probably lead to a scramble for long exits and could push the market into a range yet again. That may create a limited downside activity.

Some sectors managed to climb back into the green post the strong thrust that we witnessed in the market on Friday to end the week on a positive note. The thrust seen in Banking associated stocks were quite visible like INFRA , Private Banks and Auto that managed to show some spirited rise in the last week while Metals and Pharma after the large selloff was seen mildly limping back to some recovery. While the trends are clearly bullish the clarity on the market trends is still to get set.

Now the question is where do we go from here? Chart 1 shows a possible projection using range breakout that is possible in the next week setting tone for a potential upmove that can help some upside potential. With the market continuing to show that the upward potential is now emerging we can look for some strong upward possibility in the next few days. This is pointing towards 25300/25500 as the next extended targets.

For the coming week one can still remain a buyer on dips. Shorter term players should have a firm stop below 24800. On the higher side crossing of 25200 can help set up a new high.  We can review in our midweek update on what lies ahead.

Raja Venkatraman is the co-founder of NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.