2 top stock recommendations from Swati Ananda Hotkar

"But the overall longer-term perspective or the setup on the technical front is little bit cautious because from the last few trading sessions we are witnessing that Nifty is not giving the breakout of 18,400 or 18,500 level on the higher side," says Swati Ananda Hotkar, Nirmal Bang Securities.

This zone of 43,700-47,800 on the Bank Nifty and around 18,100 on the Nifty, how strong do you think base formation can be done? Can we build from here on towards 18,300 or thereabout which last couple of days actually have been a very strong resistance area?
Definitely, from last two trading sessions, we are witnessing very strong bouts of profit booking at the high levels which comes at around 18,300 to 18,400. But somehow today Nifty managed to respect the support of 18,000 psychological mark and on intraday basis we have seen a very smart recovery on the Nifty front and as of now it is trading above 18,100 level which is a positive indication.

But today, we have to look towards the closing because it is weekend. If Nifty manages to maintain a positive closing above 18,100 level, then a small pullback rally can be witnessed into the market which might take Nifty towards 18,300 level.

But the overall longer-term perspective or the setup on the technical front is little bit cautious because from the last few trading sessions we are witnessing that Nifty is not giving the breakout of 18,400 or 18,500 level on the higher side.

So, on every rise, we are witnessing a selling pressure, vice versa on every bottom we are getting some buying or pullback rally, so which shows that the Nifty has got stuck within the range of 300 to 400 points.

Any breakout on the either side will decide the clear trend of the market. So, as of now, I believe the view is bit cautious, not major long positions can be initiated at the level.

But yes, definitely 18,000 will act as a very crucial support level. If it spreads down level, then more selling pressure is likely to be intensified which might take the Nifty towards 17,700 levels also, which comes to around 50 days moving average.

Now, coming towards the Bank Nifty, comparative to the Nifty, the Bank Nifty is remaining strong because if we look towards yesterday's data also we have seen a very good pullback rally into the Bank Nifty and today as of now 43,500 is acting as a very strong support level.

So, as long as, we maintain that support level, we are likely to witness some sort of a pullback rally into the Bank Nifty also towards 44,000 levels.

Let us do some stock checks with you. A lot of ceramic ware and tile companies have started recovering after the results of Kajaria. So, can you tell us, if we compare Cera, Somany, Kajaria or even Orient Bell which is up 7% today, where would you take a bet on from the broader markets among the ceramic makers?
Among the ceramic makers, since you pointed out Kajaria, Cera and Orient Bell, I believe if we do the comparative analysis between the two stocks, Orient Bell looks very strong on the technical setup. The stock has given the breakout of its 200-day moving average and within the span of two to three trading sessions, we have witnessed more than 10% returns on this particular counter and it has a potential to reach up to 650-700 levels as well.
So, those who are looking for a stock pick for a short-term perspective, definitely Orient Bell looks very positive on the technical setup, downside 600 is acting as a very strong support level. So, taking into consideration that stop loss, one should initiate a buy call for immediate target will be Rs 660, then Rs 700 levels.

But other than those names, are there anything else that you are especially looking at and especially want to pick up?
Yes, apart from these sectors, I would like to give two-call. One will be on the buy side and another will be on the sell side because I believe that the market is a bit cautious. Sell side, HDFC looks very good on the sell side because of the overall setup on the weekly chart.

Weekly chart shows some negative divergence. So, I believe it will touch the 2650-2600 levels on the downside because from last few trading sessions we are witnessing at a higher level.

So, one can take a short position at the current market price, stop loss can be kept at Rs 2740 for immediate target of Rs 2600. These are the future levels.

And another interesting buy call is on the Coforge. Coforge is really doing very good in this particular market. Even if the market is correcting, but this stock is well placed above all the important moving averages, trading in the pattern of higher tops and higher bottom which gives a very strong potential on the upside towards at least 4380-4400 levels. So, one can take a long position at the current market price, stop loss can be kept at Rs 4200.