Looking at the market, what are the specific picks that you have for our viewers today?
Rahul Sharma: It is an interesting time for the market. We are seeing Nifty exhibiting range-bound trade. We are seeing crude oil jumping up. Gold has started rallying and war is something that the market is keeping a close eye on. So, in case the escalations do happen, we expect volatility to creep back into the markets. Keep an eye on these two levels of the Nifty, the first one is 24,450 and the second one is 24,200. As long as these two levels are intact, the range bound scenario should continue.
In case you want to hedge your portfolio, we are advising clients to get into Gold BeES. Whenever there has been geopolitical instability or whenever there has been escalations on the warfront, gold has been a saviour and this time around also we expect it to be the same. As a hedge, one can look to increase positions or add positions on gold BeES which is an ETF, essentially gives a diversification on the asset class and apart from that, the two stocks that look good on the long side are Hero Moto and Swiggy.
Hero Moto has been consolidating around the Rs 4350-4400 mark since the last few days and we feel structurally the stock is still pretty strong. One can look to buy at these levels for a target of Rs 4775, even Rs 4,800 and a stop loss can be placed at Rs 4149. So, Hero Moto is the one stock that we are recommending to clients.
Apart from that, Swiggy is another trade which we are advising clients to buy in delivery. The stock can be bought at these levels for a potential upside target of Rs 400 on the upside in the short term and stop loss can be placed at 365. These are the two ideas that can be initiated apart from the gold BeES investment that we have recommended, especially given the next 10-15 days where the uncertainty is at its peak.
What is your take on the overall auto pack because after a while we are seeing this sector making a comeback. Hero MotoCorp is one of your preferred bets, but other than that, even Eicher Motors, the top gainer in Nifty 50, M&M, Bajaj Auto counters are bucking the trend after a while now.
Rahul Sharma: Yes, you nailed it. In fact, we are seeing some green shoots on the auto side. So, to begin with, it is a two-wheeler auto space which is exactly the reason why we are recommending Hero Moto. Even Eicher Motors is looking pretty good on the charts. We feel that Rs 5,700-5,800 is very much on the cards provided the Nifty does not really get into a throw down mode from the current range bound setup.
Eicher looks good from these levels. It can be bought at Rs 5,400 and overall we feel that auto pack at least is showing some signs of green shoot. From the four-wheeler auto pack, M&M looks formidable and this can head its way to a relatively smaller target around Rs 3,200. We are expecting this in the short term. We are advising clients to be very stock specific and at the same time unless and until, Nifty does not come out of this range-bound setup, it is best to avoid leverage positions and stay in cash or to delivery-based investments.
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