2 stocks Hemen Kapadia is betting on

"So frankly speaking it is better to be stock specific but yes there is distinct heaviness in the market which I do not think is going to go away in a hurry. We need time, price correction of some sort," says Hemen Kapadia, KR Choksey Securities.

We know that 18,600 is a crucial mark for the Nifty, what happens if we go below that and what are the chances that we do?
Well frankly speaking the markets are tired. They are overbought. Some of the mechanical indicators have already signalled sell. We should have been at least 300 points lower actually. It is natural that we consolidate a bit. The VIX which was around 13.5 has slowly crept up to 14. Only if it goes past 17 though we should worry about a bigger fall in the Nifty but otherwise yes it is tired, stretched, overbought, needs to correct and this goes for the Bank Nifty as well.

So frankly speaking it is better to be stock specific but yes there is distinct heaviness in the market which I do not think is going to go away in a hurry. We need time, price correction of some sort.

Could you talk to us about your top picks I see one buy and one sell call coming in?
Yes, I have some trading calls. I have been bullish on IT for some time. I had given stocks like Tech Mahindra, Mphasis last week which did well but yes currently there is some resistance. So firstly we have a sell call on HCL Tech at Rs 1120, stop loss can be kept at Rs 1140 with a target of Rs 1080. The logic is that we posted a small lower top, lower bottom. You have the mechanical indicators giving a crossover sell on the daily chart that too after reflecting a little bit of negative divergence. So it is not a major trend reversal yet, it is just that correction coming in from a shorter term point of view.

The second one is a buy call on Voltas. This is a contra buy call. The stock has virtually fallen off a cliff from Rs 1350 to Rs 800 and now it is deeply oversold. The weekly picture is turning flat from downwards and the daily picture has turned positive and once again crossover buy is coming in from the oscillator. So we are looking at a bounce and this bounce should be slightly more than a bounce. So buy Voltas at Rs 850 and the stop loss can be kept at Rs 830, at a target of Rs 890. It is a modest target and I believe it can get overshot.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)