I want to understand the trend with you now. We are under 25,000 today, but this week we have at least a comfortably persistent levels above that. What is your opinion about Nifty and Bank Nifty?
CA Rudramurthy BV: We have seen a fast move – from 24,350 Nifty went all the way to 25,150. That is a win of 800 points in barely a week. Now consolidating and seeing a correction of 100-125 points is very healthy for this upward movement.
The Bold GST initiative of the government is very positive. For me, the market will now consolidate, and every dip is a buying option – not only because of GST, but also taking into account the RBI securities in the last meeting and the positive attitude in the current one.
Apart from geopolitical tensions, the Trump rate problem and a somewhat disappointing results season this quarter, if these external factors improve and collect the income in the coming quarter, together with more liquidity that comes in, I am convinced that this market will soon reach all time.
Buying on every dip is currently a great strategy. Nifty will be relatively stronger than Bank Nifty, and the support for Nifty will come closer to 24,850 the low point that we saw on August 18 after the announcement after the Gap-up Na-gst. So in the very short term, 24,850 is strong support. Buy each dip to those levels – Nifty will perform better than bank Nifty.
For bank Nifty, PSUs perform much better than private banks. Support for Bank Nifty is around 54,900-55,000. Use each dip as a buying option, but be very sector and stock-specific in this market.
Which shares are currently on your radar?
CA Rudramurthy BV: The New-Age sector does it fabulously. Even in a weak market, these shares perform better than. It is a matter of choice – you can choose Paytm, Zomato, Eternal or Nykaa. They all perform well. As a sector and theme I see a strong potential of these levels. I have continuously recommended Paytm from the 850 zone and it remains attractive, even at the current market prices. Given the big move already, I recommend Nykaa at current levels. For Nykaa, buy at current levels and on dips up to 220, keep a stop loss at 218, with goals of 250 and ultimately even 300 over a period of one to two years.
The hotel industry also looks strong. Take Indian hotels, for example. The domestic theme is very strong and international issues such as Trump’s rates have no significant influence on this sector. Indian Hotels has already broken out more than 790. The current market prices offer a good risk agreement trade to go for a long time, with a stop loss at 785 and initial goals of 850 and then 900.
In general, the hotel sector and the New Age sector themes look strong. A few other sectors also stand out: pharmaceutical, chemicals, select car and select FMCG. These sectors offer good opportunities in the field of stock picking.
In short, this market is a ‘buy at every dip’.
#top #stocks #recommendations #Rudramurthy