2 top stock recommendations from Swati Ananda Hotkar

"I believe that 44,400 and 44,800 levels can be seen on the higher side of the Bank Nifty front whereas support is placed at 43,500 which will act as a very crucial support level since the market breadth is also very positive," says Swati Ananda Hotkar, Nirmal Bang Securities.

That is quite a start to the June series and this comes on the back of last two series which have been very positive. What do you think June series will entail? At least what are the data telling you right now?
Yes, definitely Nifty is just managing to get out from the trading zone. In the full month of May, we have seen that Nifty has got stuck into the 18,000 to 18,400 level within those 400 points. Now, it is showing some sort of a signal that probably we are likely to get some breakout level of 18,400 on the closing basis and it is likely to touch 18,600 and 18,800 levels as long as Nifty sustains above 18,200 psychological mark.

So, I believe that yes, this rally is likely to be extended towards 18,600 and 18,800 level. The only concern point is the Bank Nifty. Bank Nifty still is just facing a very strong resistance level nearby 44,000 levels. If it surpasses that level, then definitely it will help Nifty to get on the higher side.

I believe that 44,400 and 44,800 levels can be seen on the higher side of the Bank Nifty front whereas support is placed at 43,500 which will act as a very crucial support level since the market breadth is also very positive.
The overall structure of the market is getting stronger day by day. So, I believe the view should remain positive on the higher side.

Positive on the higher side, but two stocks that have been trending higher today is Reliance and Cummins. What is your view on both? Are there higher levels coming or should one probably look at an opportunity to book some profits?
RIL definitely today is doing very well. The stock is well placed above 20-DMA average. From the month of March itself the stock is trading in the upward rising channel. So, all these technical parameters are really on a positive side.
So, those who are having any long positions definitely they should hold on for immediate target of 2600 on the Reliance Industries.


What are your own stocks on radar for trades because, see let us be honest, in last two series we have seen market move up, almost everything is higher. I mean small cap, midcaps are 20-25-30% higher. Where do you see margin of safety right now?
As of now definitely there is a rotation going on the sectoral base. But as of now IT looks really good on the technical front. So, I would like to give a buy call on IT and the another call is from the different sector.

HCL Tech if you look towards a larger chart on a monthly chart, it has just given the breakout of the cup and handle pattern which is a very positive indication on the technical front. It is well placed above 20-DMA, so all the technical setups are really very good on the IT pack or say it on the HCL Tech.

Today it has given the breakout of 1120-1125 level which was acting as a very crucial resistance level. So, one can take a long position at the current market price, stop loss can be kept at 1110, I am looking for a target of at least Rs 1170 to Rs 1200 on the higher side.

Second call, I am just recommending a buy call on Coal India. It is a slow momentum call but definitely it has a very strong potential to reach up to 270 odd levels on the higher side.

Also, the interesting fact that it has just given the breakout of the pennant pattern on the 120 minutes chart which is a very positive indication on the technical front.

So, one can take a long call at the current market price. Currently, the stock is trading at Rs 241, place a stop loss up to Rs 235 for immediate target of Rs 270.

What is your view on HDFC Bank, quite a bit of underperformer in this series as a whole and for month to date it is down 5%.
Yes, this month was not really good for this particular counter, we have witnessed a profit booking from its all-time
high level which was at around Rs 1734.

Now, the selling pressure is likely to continue and we might see the stock may test the Rs 1570 levels on the downside which will act as a cluster support level.

From there onwards we will again see some sort of a bounce back rally which may take a stock towards Rs 1650. So, the view is a bit cautious. Let the stock find out a support level nearby 1570 to 1530 levels, then we will see some upward momentum.

But if you are looking for a banking counters only, one can just keep eye on Axis Bank, SBI. Those stocks are really doing very well in this market. So, just a little bit cautious on the HDFC Bank but positive on ICICI Bank and SBI.