Everest Kanto, Morepen Lab: 5 stocks to make your portfolio Covid-proof

Major stocks in the healthcare equipment sector are showing firm upside of over 15 per cent

The second wave of Covid-19 has hit the economy and the stock market hard with normalcy taking a backseat yet again. At the bourses, portfolio returns have turned negative, with benchmark indices declining over 4 per cent each over the past one month, as investors at large book profit on fears that fresh Covid-19 related restrictions and state-specific lockdowns may pause the economic recovery.

As state governments extend lockdown amid globally record high cases in a single day, analysts fear the earnings of India Inc in the upcoming June quarter may take a hit. 

"Indian economy is on a firm recovery and budget has boosted the prospects due to significant capex boost, PSU divestment plan and RBI resolve to maintain accommodative monetary policy stance. However sharp spike in Covid-19 cases is likely to disturb growth momentum in the near term. We believe Q1FY22 presents challenge given expected lockdowns due to 2nd wave of Covid 19," said analysts at Prabhudas Lilladher in a recent report.

However, the current market turmoil, they say, can be used as an opportunity to add Covid-related plays to ones portfolio. As hospitalisation rate keeps climbing, analysts suggest picking stocks in the pharma, gas manufacturing, and medical equipment segment can protect investors against the negative bias in the markets.   

Here are some of the stocks that may rally in the Covid-hit market:

Poly Medicure Limited (POLYMED)

Likely target: Rs 1,150 - Rs 1,200

Upside potential: 11.54% - 16.39%

Since the stock has doubled in the last two months, from the lows of Rs 500 levels, the medium-term outlook is enjoying the support of 50-days moving average (DMA), placed at Rs 782-mark. As long as the stock is trading above Rs 900 levels, the upside bias may see a rally towards Rs 1,200 levels, as per the daily chart. The Relative Strength Index (RSI) has not seen any weakness even in the overbought category lately, signifying the underlying strength. CLICK HERE FOR THE CHART

Everest Kanto Cylinder Limited (EKC)

Likely target: Rs 180 and Rs 200

Upside potential: 22.24% - 35.82%

Stock of this cylinder maker has suddenly turned investors' favourite as major breakouts above Rs 80 and Rs 50 saw tremendous buying momentum. Moreover, the RSI indicator is standing tall in the overbought territory. This clearly indicates a firm positive bias with the counter scaling higher highs, as per the weekly chart. Going forward, till the scrip does not breach the support of Rs 120 and Rs 100 levels, the upside bias may see a rally towards Rs 180 and Rs 200 levels.  CLICK HERE FOR THE CHART
 
Morepen Laboratories Limited (MOREPENLAB)

Likely target: Rs 65 -  Rs 72

Upside potential: 27.83% - 41.59%

The stock has crossed the major resistance of Rs 45-mark and, now, any move above Rs 56 may see an upside rally towards Rs 65 and Rs 72 levels. This upward move is highly supported by increased volumes which shows a positive interest of market participants in the counter. CLICK HERE FOR THE CHART
 
Linde India Limited (LINDEINDIA)

Likely target: Rs 2,100

Upside potential: 10%

The stock of this gas making company is making efforts to absorb all the selling pressure emerging above Rs 1,870 levels. A firm close above this resistance may open doors for an uncharted territory of Rs 2,100 levels. The medium-term outlook is optimistic above the support of Rs 1,700 levels, as per the daily chart. CLICK HERE FOR THE CHART
 
Opto Circuits (India) Limited (OPTOCIRCUI)

Likely target: Rs 6.40

Upside potential: 20%

The continuous upper circuits for five consecutive sessions have come near the resistance of Rs 5.28 levels. If this resistance is crossed, the next upside may head towards Rs 6.40, which is the next resistance, as per the daily chart. The immediate support comes at Rs 4.40 and Rs 3.80 levels. CLICK HERE FOR THE CHART