stock recommendations: 2 top stock recommendations from Aditya Arora

“If anybody has medium term view, then one should maintain positive bias, like correction would be a buying opportunity, in case Nifty corrects to 23,000 or 23,300, it would be a buying opportunity because somewhere down the line we are again racing towards levels like 24,000 and 24,500,” says Aditya Arora, Adlytick.The markets have rebounded. In fact, the Nifty is rising above the 23,600 mark. In fact, as my colleague Ansh Bhilwar was also mentioning it surpassed above that 100 DMA mark for the first time this year. Would you call this sentiment that we are currently seeing in the markets as that of cautious optimism? How would you describe it as?Aditya Arora: I think the texture of the market is very nice and the participation of midcap and smallcap makes the rally very energetic and strengthful because all engines are firing now. All the sectors are doing well, so that is a positive sign for the market. Although there could be some cool off as we have seen one way rally in the market on index level. Nifty has done a one way move from 22,000 to 23,600, so there could be some cool off, but that would only be some retracement and this strong uptrend is likely to continue. So, if anybody has medium term view, then one should maintain positive bias, like correction would be a buying opportunity, in case Nifty corrects to 23,000 or 23,300, it would be a buying opportunity because somewhere down the line we are again racing towards levels like 24,000 and 24,500.

While you spoke to us about the key levels to watch out for in the Nifty, help us understand this kind of momentum that we have seen on Nifty Bank as well because what a move we have seen. It is up almost 2% in today’s trading session alone and we are just at the halfway mark of the trade. Tell us, what is the outlook for the second half of the trading day when it comes to Nifty Bank? Also, a slightly longer-term outlook for Nifty Bank because it is not only the private banks that are shining today, you have PSUs also that are participating in equal measure. So, what is the kind of outlook that you have for when it comes to the entire overall banking index?Aditya Arora: So, I maintain very positive bias on the banking index, but when we talk about today’s market trend going forward, then I see most of the uptrend has maybe played out because Bank Nifty is about 2% and VIX is also climbing up, so maybe 51,700 is the hurdle for the Bank Nifty for the day. So, there could be some cool off along with cool off in VIX, so that is the trend for the day. But going forward, I think that uptrend has just started, the rally has just started and party has just begun. So, a long way to go on the upside.

A lot of largecaps are breaking out and giving a strengthful move on the upside, so any retracement on Bank Nifty would be a buying opportunity and soon we are going to see higher levels.

Currently, Bank Nifty is trading at 51,600. In some time, we could see Nifty reaching levels of 54,000 in about one month, so we maintain positive bias with stop loss of 49,000.Let me also try and address one of the key concerns that has been spoken about so far as this rally is concerned and that is the threat of the April 2nd and many estimate and expect that Donald Trump would slap reciprocal tariffs on India as well. But what do you really make of the approach that has been taken by both the sides because it has been largely negotiation-based approach. It is not really like we will slap you tariffs and then it is not going to work. I think both the sides, of late you see the commentary coming in from India and the United States, it has been that we need to work on a mutually beneficial bilateral trade agreement.Aditya Arora: I think that would not be much of a concern because a lot of that news is discounted by the market. And once market discounts the news, it does not react too much to that news. We have seen that happening in times of COVID. We have seen that in times of wars as well. First, second, third reaction is significant knee-jerk reaction, but post that it is normal business, so most of the pain is behind us and look at the FII long position who are considered insiders or institutions which drive the trend. They are continuously buying in the market. The selling in the cash market has stopped. So, they are buying in futures options and cash market. So, I believe that when the big institutions are big buyers, there could not be big downside in the market and every dip is a buying opportunity and even if there are significant tariffs, it would be a one-day reaction.

Help us understand what your stock-specific recommendations are. Where are you seeing pockets of value in the market at present?Aditya Arora: I think that a lot of sectors are doing well. FMCG is one of the sectors which could catch up. So, one of the pick over there is Jubilant Food. It is a bullish candidate at 655, 620 is the stop loss, and 690 to 700 is the target, that is the first one. And second one is Godrej Agro, that is also a bullish candidate. It is a buy at 805, 760 is the stop loss, and 850 is the target.