How are you finding it navigating the market, given that it is turning out to be stock picker’s market and index traders are finding it very difficult? That is what my observation is. What do you think and what levels are you watching out for?
You said that it is a stock picker’s market and there is no trend. Absolutely, there is no trend on index level because we hit important mark like 19, 900 on Nifty.So that is an option writer’s zone. Hence, market is digesting the very quick move, which we saw from 18, 500 to almost 20,000. So on index level, there is no activity and there would not be activity for some time.
And the trend is pretty dull over there. But stock specific activity is pretty good. And we are liking chemicals sector today. You can see a lot of buzz in small cap, mid cap chemical names.
And a little bit of metals are doing well. So absolutely sector specific and stock specific market is playing out. And those who want to outperform need to pick and choose now. It would not be a broad based rally.
You are saying a stock picker’s market, you are agreeing with that as well. So what are your top picks then today?
I have chosen stocks on the mid cap, small cap space only. My first stock would be Prestige Estate, which is from real estate. Although, the trends over here are pretty calm but this stock can actually do well if we take horizon of one month or so. So Prestige Estate could be bought at Rs 580 and stop loss should be Rs 539. Target should be Rs 640 to Rs 700.
Second stock is Sanofi from pharma space. Although, market is not doing well on the index level hence, a lot of defensive stocks are doing well.
Pharma is continuously outperforming. So Sanofi can be bought at Rs 7400. Rs 6800 should be the stop loss and Rs 8600 to Rs 9000 should be the target.
Two stocks from the same space, one has done very well but one is just starting off today. And that is Black Box. I mean, the name itself is quite intriguing but have you looked at that chart, Black Box? It is a data centre company. And the other data centre stock which has done very well is Anantraj. It is a data centre play, almost doubled in the last 7-8 months but both. Can you check the charts for us; Anantraj Industries, one and Black Box, which has announced on the exchanges today that they aim to raise funds and after that, the big spike actually came.
A very interesting chart. Black Box could be bought at Rs 223, Rs 224 and Rs 198 should be the stop loss. And target should be Rs 240 to Rs 270. Anantraj, the trend is pretty dull in the short term. So, I would like to wait and watch. But Black Box really looks interesting as the name suggests.
You did mention some of the chemical names that you are liking. Anything interesting that you have picked out there? And as well as look at the run-up that we have already seen in about Mrs. Bectors. They are managing to post that good numbers coming in as well. So, anything on Mrs. Bectors as well as which are the chemical names you are looking at?
On chemical names, I like Bodal Chemicals, which can be bought at Rs 75. Rs 65 should be the stop loss and Rs 91 to Rs 100 should be the target.
Second one, Krishna Phosphate, which could be bought at Rs 457 and Rs 400 should be the stop loss. And Rs 550 to Rs 650 should be the target. These two stocks I have recommended to my clients. So, you must once consult your financial advisor before taking any buy call. Second, Mrs. Bectors Food is pretty much overbought as of now and selling pressure is evident at the higher levels. So, I would like to avoid this one.
Two stocks on the NBFC space; one, Poonawalla Fincorp on the news of Mr Keki Mistry joining them as strategic advisor. It is a big one. I mean, they are joining a 3000-35000 crore company only. Poonawalla Fincorp is a smaller company. And as per the press release, it says that they are going to be a strategic advisor. Mr. Keki Mistry will be a strategic advisor. A company of that size, 5 lakh crore market joining a 35000 crore group, saying that overall financial services strategic advisor. That’s a big thing. Also, U GRO Capital has shot up to a fresh life high. Both these stocks, how are you checking out?
Poonawalla Fincorp looks little overbought in the short term but if you take a long-term horizon like 1 to 2 years, then this stock can do really well as you rightly compared it to HDFC Group. The kind of CAGR return which Poonawalla has given, strong commentary from the management, everything points towards strong outperformance in the long run. Although in the short run, the stock looks pretty overbought.
Piramal Enterprises actually has come back very sharply. Have you checked the charts of Piramal Enterprises?
Piramal Enterprise is actually at the support level. I expect some neutral to positive trend in Piramal Enterprise. Although this level of 1100-1110 is a short-term resistance for the counter. Hence, it will take some time to actually overcome and shoot up little bit. So, my view is little neutral to positive and it can be bought at 984. And stop-loss should be 930. And target should be approximately 1020 and 1040.
