\”One can be bullish on the largecaps at this moment and be bearish on smallcaps and midcap space because I think market is also pricing in rate cuts, so that is also one of the very positive news which could create a significant short-term, medium-term top for the market,\” says Aditya Arora, Adlytick.
What are your top stocks to watch out for in this market? Going into elections or this month, one section of the market believes sell in May and go away will happen, others are saying no, there could be a big rally going into elections.
As you rightly summed it up, today largecaps are doing well and midcaps and smallcaps are underperforming so that is the theme for the day. And when it comes to indices, then I think good euphoria is building up in the market before the election because market is discounting Modi victory in this election so that is pretty much priced in and a lot of euphoria could build up around that event.
But post that, I do not think market would have a lot of steam left to rally further because this would be one of the greatest news for the market to shoot up significantly. So, I think one can play tactically right now. One can be bullish on the market. One can be bullish on the largecaps at this moment and be bearish on smallcaps and midcap space because I think market is also pricing in rate cuts, so that is also one of the very positive news which could create a significant short-term, medium-term top for the market.
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So, I think around May it is going to be very important time zone for the market, so I am playing tactically over here being bullish on the largecaps and being bearish on the smallcaps and midcaps.
And yes, you were talking about my picks, so my pick is Navin Fluorine. I think chemical sector is beaten down to a great extent and now chemical name have come into good valuation zone. They are good buy right now. So, Navin Fluorine is buy at Rs 3414, Rs 3270 is the stop loss and target is Rs 3550.
But other than that, let us just talk about some of these individual stocks today also that we are seeing, a lot of volume in. We have IREDA. Obviously, what is the view that you have on IREDA as well as IDFC First Bank, both of them are seeing higher volumes in trade?
I think IREDA is a good stock from medium term point of view. Stock has given fantastic rally from IPO price of Rs 50-55, the rally started from there.
I think there is more steam left over here towards level of 200-220 in the medium term. In the short term for today, I think there is selling evident from the top, so if one has to take view for the intraday or short time, then I think wait for the dip.
But if the view is for a little longer duration, then I think there is more steam left towards target as mentioned before 200 to 220. And second one, IDFC First. Today, banking space is doing well. The largecaps are doing well. But if we look at the smallcaps, then they are underperforming the market. I think this theme could prevail for some time but on dips some stocks look good and IDFC qualifies for the same.
So, I would be a buyer in IDFC at this point in time at Rs 121, my stop loss would be a small stop loss of Rs 119 and target would be Rs 123 to Rs 125, this would be a short-term pick as of now.
