2 top stock recommendations from Swati Ananda Hotkar

"Any move above 18,200, again we will retest the 18,400, 18,600 levels. So, the view is not major negative as of now. I believe market is giving an opportunity to take a buy call on every dip as long as 17,900 level is well placed," says Swati Ananda Hotkar, Nirmal Bang Securities

What is your take on Nifty and Bank Nifty? Market has already run up and there is no apparent negativeness right now for Indian market also. Crude is down, dollar index so everything was supporting and now this HDFC news coming in and these two are weighing on the markets. Do you see a fall which will be shallow or do you think we could go back reasonably?
Definitely, yesterday we had seen that the bulls were really in a very triggered way running towards upside. 17,200 has been claimed on the closing basis which was a very positive indication. Today, the news has came about the HDFC twins and we have witnessed some sort of a profit booking. Now, 18,200 was acting as a crucial resistance levels. We are at 17,900, this 100 points will act as a crucial support level for the Nifty. As long as this support is maintained on the closing basis, again we can see that the bulls can come back into the market and again 18,200 levels can be tested back. So, the view is bit cautious but the positive will remain intact as long as Nifty holds 17,900 levels.

Any move above 18,200, again we will retest the 18,400, 18,600 levels. So, the view is not major negative as of now. I believe market is giving an opportunity to take a buy call on every dip as long as 17,900 level is well placed.
The overall trend of Bank Nifty index has remained positive from the last few trading session. We have seen almost from 42,000 psychological levels one side, the rally into the Bank Nifty which has tested 43,600 odd levels on the higher side.

So, the profit booking cannot be denied at the higher levels, but definitely I believe 42,800, 42,500 can come down and we can just see the support formation in that particular range and again we will witness some pullbacks rally. So we do not need to worry at the current levels. It is definitely a buy on dips markets, one should hold their long positions because every day we are witnessing a sectoral rotation into the markets. The stocks are really doing very well. There is no major sign of weakness into the markets, so one should hold their long positions.

You said buy on dips coming in, not much of a worry there, then what are you finding attractive in such a market, any specific interesting sector that you are looking at or specific stocks that if you talk to us about as well?
I am as of now looking for stock specific trading, not emphasising purely a single sector or something like that. Being a technical analyst, the counters which are really giving a strong pick up on the technical chart are the ones I am selecting. Currently, as of now today I am witnessing that the retailing sector is really doing very well, from among that sector Trent, is really doing very well. Even though the market is correcting, this particular stock is up by almost 1%, 1.3% at the higher level.

Higher tops, higher bottom formation is well placed above the 20 DMA which is a very positive indication on the technical front. The volumes are really doing very well along with the price momentum. So, I believe it has a very strong potential to reach up to 1500 levels on the higher side, so one can take a long position at the current market price which is trading at 1420-1422 level. 1390 will be my strict stop loss for immediate target of 1500 levels.

My second buy call is Biocon. This particular counter is just struggling or just hovering near its 50 days moving average and I believe even though the market will correct in the coming one to two trading session, this particular counter will act as a defensive pack and will witness some sort of a positive momentum towards at least 265 to 275 levels, resistance provided by its 200 DMA.

So, I believe this rally is likely to be going forward, can witness a 200 DMA. So, one can take a long position into the Biocon. Currently, the stock is trading at 242 levels with the immediate stop loss of 235.


Couple of stocks I want to understand with you. One is Tata Steel, good blockbuster numbers, stock was in a good shape, down 2% today. Do you think it should be added or position can be built around current levels?
See, if we look towards on a larger degree on a weekly chart, the stock is very much consolidating within the range of 100 to 110. Within that range only the stock has given movement for at least two months. If it manages to give a breakout of 110 levels, then definitely we can witness some swift rally on the positive side towards 120 to 125 level. I will suggest to wait it down, once the stock gives the breakout of 110 level, one can initiate a buy call or those who are having any long positions, they can hold on with the strict stop loss of 100. So, the view as of now is that the stock is just under the consolidation phase or breakout of 110 levels and we will witness a very positive sign in this particular counter.

And some of the other large cap stocks, L&T, right ahead of the results, there has been a good upgrade by one of the international brokerages and the stock is gaining among the top two-three stocks on the index, but it has also after almost going to 2450 odd, has corrected a bit. Is it a good time to add L&T on any decline from here?
Yes, definitely, L&T is a very strong contender and one should definitely have into their portfolio. On the weekly front, it has given the flag pattern breakout which was coming to at around 2270 level and I believe it will retest again its all-time high which comes to at around 2460 levels and it will go to new high in the coming few trading sessions if the market supports the sentiments.

So, if the stock gets any dips towards 2280, 2260 odd level, definitely one can take a long position. I believe 2220 will act as a very strong support level and for a target of initial will be 2420 and above that level I believe 2480, 2500 can be very soon seen into this particular stock.