5 top stock recommendations from CA Rudramurthy BV

"So someone who wants to take position on in the index I will definitely advocate going long even at current price on Nifty futures, keep a stop loss somewhere at around 18200," says CA Rudramurthy BV, Vachana Investments.

What do you make of the market set up over the last couple of days? It looks like we are a bit in a consolidation mode. Is it likely to continue or higher levels are coming soon?
For me, I feel higher levels are definitely coming soon and the support at around 18150 to 18200 is very strong and having moved nonstop for about 1500 points on Nifty, we are just catching a breath out right now and I feel the momentum on the upside will continue.

So someone who wants to take position on in the index I will definitely advocate going long even at current price on Nifty futures, keep a stop loss somewhere at around 18200.

Bank Nifty can make the all time highs much faster than Nifty. Also most crucial event coming is Karnataka election results where markets and the exit polls are discounting a simple majority to Congress but if that does not come either, BJP makes it through coalition with JDS or they make it single handedly that will act as another big booster for market.

So for me, keeping both, the political situation and the expected result, plus also the technicals on market, this is definitely a strong, strong buy on every dip. Keep a 18200 stop loss on Nifty future, look at 18600 all time highs to come very soon.

Five days in a row that we are looking at the lowest point of the day gets made in the first hour 18200 or thereabout and 43500 thereabout on the Bank Nifty, sharp recovery but midcaps, small caps are outperforming already for the last four days. Market breadth is favouring them. What is your broader view on the broader market and also any stock picks from there?
If I say specifically, as you clearly mentioned, a lot of good mid and small caps are doing very, very good. So if I have to pick specifically from mid and small cap stocks, a stock like Onward Technologies for me looks very good. Repeatedly, I have told that about this stock and now the stock has given breakout of about 330-340 and it is headed towards 500 rupees.

If someone wants to pick from a mid to small cap IT kind of a stock. Even if you see a stock like HariOm Pipes, another very good stock, which can even double from current level, looks very strong to me. Parag Milk is another stock, which I like at current levels. So these are a few midcap ideas.

I also like Tata Motors a lot. No doubt this is coming out with results today and the stock has already moved up too much. In fact, I was putting my neck out every time telling that Tata Motors will be the stock of the year. But at that point of time, stock was between 400 to 420 levels. From there, it has gone up now above 500. But even at 500 I am telling you, this will be the stock of the year.

Tata Motors in F&O can carry long positions. Keep rolling it over and you will make a lot of money. So Tata Motors is a buy at current price with stop loss at Rs 505 and look at Rs 550 as initial target and eventually the stock is headed towards Rs700 to Rs 800 zone. I even like OMCs on charts and Hind Petro looks very strong to me, so buy Hind Petro, keep a stock loss of about Rs 255 and look at initial targets of Rs 275 and eventually it can even move to Rs 300 levels.

Talk to us about some of these big movers today Intellect Design, Zensar Tech, Eicher Motors, would you be a buyer in any of these names with the momentum being on the upward?
One has to understand IT has hugely underperformed last year and even after Infosys results, markets came down. For me more or less Infosys or even if you look at large, midcap, small cap all stocks from IT sector it is making a clear bottom formation signal and specifically some of the names whatever you told right now, yes, Intellect Design looks very, very strong.

Rs 475 has been that region where it has given a clear breakout and today if you see huge volumes and price is on the positive side, a big rounding formation has happened from last quarter earnings to this quarter, so stock have consolidated for three months period on chart. You are now seeing a breakout above Rs 475 levels. This is to stay. And I would not be surprised that this stock is headed towards Rs 630 zones, even from current level there is an up move for about at least 25% possible on Intellect Design.

It is not a buy, but a strong and a great buy. So I will be a buyer in Intellect Design, looking for targets of Rs 600 to Rs 630, keeping a tight stop loss of today’s low or the breakout zone of about Rs 475. Risk reward is very, very favourable. Just now I mentioned another stock Onward Technology that also looks very strong to me.

Still, I am looking at targets closer to Rs 700 to Rs 1000 to come on Onward Technology, even from current price, might take another year or two but these are good stocks to buy. These stocks have not under performed even when IT was going down. So you have to pick this type of movers.