Aditya Arora, Adlytick, says he would like to go with defensive names in a volatile market. The first pick is Lupin. Lupin could be bought at Rs 1600; Rs 1520 would be the stop loss and Rs 1720 would be the target. The second one, Voltas, has been rallying today. It could be bought at Rs 1,370 with stop loss at Rs 1300 and target at Rs 1,450-14,90.
Before we talk about Nifty, Bank Nifty, I want a status check on the chart check regarding broader market indices as well.
Aditya Arora: Markets are rebounding pretty strongly, so that is a pretty good sign and they are rebounding from a very important level. On Nifty, we tested important support levels of 22,000, so that will act as important support for the market. We should not have bearish bias until Nifty breaks 22,000 again. On midcaps, smallcaps, the idea is to be theme specific. Like today, sugar names are bouncing back pretty handsomely and that theme really stands out because internationally also, agri commodities and all these commodities are doing pretty well.
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So, sugar internationally has risen quite handsomely in the last few days. I am bullish on that sugar theme. If we talk about metals, that is also doing well. I would like to be a little theme specific when it comes to smallcaps and midcaps and if we talk about index level, then there is not much action since last few days, it has been range bound, but we can see fresh momentum if Nifty smallcap index breaks the resistance on the higher end which comes at 16,700.
So, when 16,700 is taken out on Nifty smallcap index, we can see a momentum rally over there but I am also a little sceptical on the market given the recent fall in S&P 500 and all the fancy names, FAANG names and Nvidia falling over there, so that is creating little jitter. My idea is to be little theme specific and if I talk about themes, then I am bullish on agri commodities, sugar and metals.
What are your specific trading ideas?
Aditya Arora: In this dynamic environment, we are seeing a lot of volatility and huge gap ups and gap downs, I would like to go with little defensive names also. The first one on my picks is Lupin. Lupin could be bought at Rs 1600; Rs 1520 would be the stop loss and Rs 1720 would be the target.
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The second one, Voltas, is showing a handsome rally today, that could be bought at Rs 1,370 with stop loss at Rs 1300 and target at Rs 1,450-14,90. It is a relief in an environment which is pretty hot temperature wise and in the stock market also we are seeing a lot of volatility.
What do you make of the drop on Persistent stock price? Would you be a buyer in the dip? The other one is Metropolis and it is reacting to that Morgan Stanley initiation. What is the view on these two names, Metropolis as well as Persistent Systems?
Aditya Arora: We saw an almost 10% cut on Nvidia on Friday in the USA and also FAANG stocks are underperforming. Apple went down a little. That sentimental overhang is there in India as well and we have seen Nifty IT underperform. Chartically also there is little weakness in selling over there. I would not be an aggressive bull in Persistent as of now and we have seen a very good rally in Persistent in the last few quarters. Probably the mean reversion trade is playing out here. Although the stock is trading at an important support of Rs 3,550, it is an important support, but there are a lot of other themes which can do well. I would not be an aggressive bull in Persistent at these levels.
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