Aditya Agarwala on 2 stocks to bet on now

"For the Bank Nifty, on the downside, 42,400 is the immediate support zone and on the upside, 42,400-42,500 is the resistance,” says Aditya Agarwala, Co-founder & Director, Invest4edu

What is your view on the market, Nifty, Bank Nifty and then we can take it to stocks?
Clearly there is a bit of a selling pressure on the index, especially in the headline indices; the Nifty and the Bank Nifty. 18,400-18,450 has been acting as a major hurdle as we approach the all-time high levels. This was on cards. In the previous week, the markets could not take out that resistance of 18400-18450. Some bit of profit-booking was definitely on the cards.

The previous week, the broader markets had been underperforming big time. What is heartening to see is that the broader markets have now started to outperform the headline indices. Today is the first day. After a couple of weeks, the broader markets are now outperforming, the smallcap index is already in green and the midcap index is almost there in the green.

My sense is this correction could be nearing an intermediate bottom for the Nifty in 18150 to 18090 level. On the downside, that is a good strong support. Traders can start looking and getting into the markets around those areas. Again on the upside, 18400 will continue to act as a hurdle. The same holds true for the Bank Nifty, on the downside, 42,400 is the immediate support zone and on the upside, 42,400-42,500 is the resistance.

What are the stock ideas that you have for our viewers?
A lot of stock-specific activity is going around. The first stock is from the city gas distribution space. This is one area which has been doing well for itself in the past week as well. IGL is something which stands out. One can go and buy at current levels and look for a target of Rs 435 on the upside with a stop loss at Rs 409 on the downside.

The second stock recommendation is from the banking space – though the Bank Nifty is not doing that well – is ICICI Bank. It is looking good on charts. It has broken out from a downward sloping channel. On the upside, the stock can easily test the Rs 945 to about Rs 950, on the downside the stop loss can be kept at Rs 914.