Let us look at the markets. In fact, on the Nifty we have slipped below the 25,400 mark today. In fact, we are below 25,350 levels right now. From here on, what are the levels to watch out for? Is the market really waiting and watching out for how the tariff talks pan out? A decision to come in for it to pick up a certain direction because right now it is only individual stocks that are really moving. But as far as Nifty is concerned, we are consolidating, we are correcting right now.
CA Rudramurthy BV: Let me be very-very clear, the market consolidation what is happening in last one week is all because of the tariff worries and what might be the rates at which Trump might tax India. Now, keeping this point aside, we cannot consider a 0.25% kind of a fall in Nifty as a big fall in market having seen a big move already above 25,200.
Now, let me be very crystal clear, 25,200 was an earlier resistance in Nifty which we broke. Now the 25,200 will act as a strong support. So, every dip to 25,200 we have to use as a buying opportunity and keep a stop loss of 25,000.
Till we are above 25,000 on Nifty, this market is a buy on every dip. I will completely change my stand once we close below 25,000 or else use every dips to 25,200 as a buying opportunity in Nifty and sector specific, stock specific, you have lot of opportunity even in this consolidating market.
Similar levels on Bank Nifty if you watch, earlier that 56,100, 56,000 which was acting as strong resistance is now acting as a strong support having broken that level of 56,000. So, every dip to 56,100 on Bank Nifty, I will use it as a buying opportunity, keep a stop loss on a closing basis below 56,000.
Until we are above 56,000 on Bank Nifty and about 25,000 on Nifty, use every dip as a buying opportunity. Macros are very good both globally and locally and we have to very closely watch what will be the Q1 result season which will pan out and if that is good, definitely it is a matter of time like Bank Nifty, even Nifty will hit all-time high. So, all eyes will be closely watched on quarterly results.
I want to understand that as you seem quite bullish in this market, which are your top picks which one can pencil in?
CA Rudramurthy BV: I will specifically first name the sectors where I am very bullish. Defence is a very-very bullish sector and BEL, stocks like even HAL are my top picks. You have to be very choosy there in defence sector. BEL and HAL will be my top picks. Look at pharma how beautifully it is doing and for me pharma is one of the best sector and go-to sector.
Look at stocks like Divi’s Labs, Laurus Labs, Biocon, they are looking very-very attractive. PSU banks will also do very good. In that, I have choice towards SBI, PNB, and then Canara Bank. It is also bottoming out. Look at Tech Mahindra, look at Coforge, look at Persistent Systems they are all very good.
Mid-sized private banks are also doing good. Federal Bank is my top choice there, even look at City Union Bank, even look at RBL Bank they are looking very-very good. So, metals are also showing bottoming sign. Vedanta and Hindalco will be my top pick. Chemicals are also doing good, in that you can pick up either UPL or look at Navin Fluoro, SRF, they are good stocks to definitely be in in chemical sector. Today, I am choosing two stocks.
One being Biocon. Pharma is doing very good. Biocon is also doing very good, so buy Biocon at current market price, I am looking at initial targets of 400 to come on Biocon, keep a stop loss of 365 for this long call. And also a buy call on DMart. DMart looks good to me, accumulate it on every dips to that 4,150, 4,200 zone and looking at initial targets of 4,500 to come on DMart. So, a buy call on Biocon and on DMart.
