Sun Pharma, ITC: Bet on these 5 defensive stocks to ride market volatility

With a strong up move on March 1, 2021, the stock of Sun Pharmaceuticals now needs to cross the resistance of Rs 620 mark to see a breakout rally towards Rs 640 and Rs 655 levels

Domestic markets started off the week on a strong footing, ruling nearly 2 per cent higher in the intra-day trade. While all the key indices were trading firm, analysts expect the markets to remain volatile as a spike in US bond yields is likely to trigger a flight to safety among investors. Last week, the yield on the 10-year US Treasury rose to as much as 1.61 per cent, which sent shockwaves through global equity markets.

"Going ahead the market may continue with its consolidation given weak global cues. Investors would closely track bond yields, geopolitical tensions and inflation data for further market direction and would monitor developments around new US stimulus announcements," believes Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

Against this backdrop, here are some of the defensive plays that investors could invest in:

ITC Ltd (ITC): The upside bias may remain unaffected as long as the stock doesn't breach below the Rs 200 levels decisively, daily chart shows. On the higher side, resistance of Rs 225 needs to be firmly conquered to see further buying momentum. The immediate resistance comes at Rs 212 levels. The Moving Average Convergence Divergence (MACD) has broken the zero line downward, illustrating weakness in the stock. CLICK HERE FOR THE CHART
 
Infosys Ltd (INFY): A "Symmetrical triangle" formation on the weekly chart indicates resistance at Rs 1,300 levels while the support is seen at Rs 1,250 mark. A decisive violation of these levels may decide the next course of action. While the volume structure suggests a negative bias, the price strength has, so far, upheld the lower rising trendline till date negating weakness. Moreover, investors can expect a rally of nearly 150 points on the breakout of the pattern. CLICK HERE FOR THE CHART
 
Blue Star Ltd (BLUESTARCO): The stock is attempting to conquer the resistance of Rs 900 mark, as per the weekly chart. Moreover, the move is supported by MACD, which has made a positive crossover. Going forward, as long as the stock holds the support of Rs 850 levels, the upside bias may see a rally towards the direction of Rs 1,100 to Rs 1,200 mark. Volume build-up in the stock hints at keen investor interest as the volumes are doubling from the last negative close, weekly chart shows. CLICK HERE FOR THE CHART
 
Sun Pharmaceutical Industries Ltd (SUNPHARMA): With a strong up move on March 1, 2021, the stock now needs to cross the resistance of Rs 620 mark to see a breakout rally towards Rs 640 and Rs 655 levels. The RSI is trading with a positive crossover despite the current weakness, which highlighta the underlying strength in the stock. On the downside, the support comes at Rs 600 levels. CLICK HERE FOR THE CHART
 
Piramal Enterprises(PEL): Despite a bearish divergence on the RSI, the stock price is not reflecting any major weakness, daily chart shows. However, a decisive break below the Rs 1,800-mark may accelerate selling pressure. On the upside, a move above Rs 1,950 level may open doors for Rs 2,100 to Rs 2,160 levels, as per the daily chart. Add to it, the MACD is supportive of the uptrend that has upheld the positive crossover even in negative moves. CLICK HERE FOR THE CHART