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Dip to 22,500 a buying opportunity; 2 stocks to buy

Shilpa Rout, Derivatives Analyst, Prabhudas Lilladher, says Coal India is one of the top picks had today. The other one would be SRF which is also showing a lot of momentum. The chemical and fertiliser space is buzzing very strongly. And from here, SRF can touch Rs 2,750 to 2,800. It has already run up from the time I have been giving this recommendation. But yes, on every decline towards 2,640 also, we can buy. Let’s keep a stop loss at Rs 2,600 or just below that, maybe Rs 2,595 and look for targets towards Rs 2,800.

What are you expecting in Nifty and Nifty Bank? Nifty has crossed the 22,700 mark/ Any particular level that one should watch out for as a support and a resistance for the Nifty?
Shilpa Rout: We see that there is a resistance at around 22,800 and until and unless we breach on the upside from here, we might not see 22,000, 23,200 coming in very easily. However, there is a limited downside. We have a very strong support at 22,500 as well. So, any sort of dip that you get intraday or maybe a couple of days towards 22,500 should be a buying opportunity and to go long for 22,800 to 23,000 to 23,200 as well.

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Talking about Bank Nifty, we see that it is on the uptrend. But, however, there is a psychological barrier. It is nowhere a technical barrier, but a psychological barrier at around 49,000 mark. Once we cross that and sustain, we will see the 50,000 levels coming in very soon.

The top sectoral gainer today is Nifty Energy. Do you find anything exciting in this pack or do you think that the run-up that we have seen in some of these names can continue?
Shilpa Rout: Yes, energy overall is doing very well and we have seen run-ups in Tata Power, NTPC, Coal India and ONGC. All these stocks in this particular sector has done very well. But keep an eye on Coal India from here. Coal India futures trading in the Rs 450, 453 zones. I believe that has a very strong potential to test Rs 480 to 500 with a stop loss of Rs 440.

Again, it is a very favourable risk reward. The other one to look at from this sector is NTPC. It is also heading towards Rs 400. Any dip towards Rs 340 should be accumulated for the targets of Rs 400.

What are your thoughts on NMDC and Vedanta? Analysts believe that now iron ore prices have bottomed out, so that positive comes in for these companies.
Shilpa Rout: In Vedanta, we have seen some sort of crazy up move already. For now, we might avoid it because we were aiming at the targets of Rs 370-400 and we are already at Rs 365 odd zones. But NMDC again, has a good potential for a favourable risk reward ratio towards 300. Stock is trading at around 240, 243. So, keep a stop loss at Rs 220 and stay long towards 280 to 300 zone.

Let us talk about some of the other volume buzzers that we are seeing in trade. IDFC First Bank, which is making the list again. On the charts, are you finding that exciting?
Shilpa Rout: Yes, of course, IDFC has been on our radar for quite some time. The moment it has crossed above 80, it is moving towards 80 to 90, probably 95 zones as well. Because of Bank Nifty, we aim at around 50,000 levels from here, then all these sectors oriented stocks will definitely move and in this particular move IDFC First Bank will also see Rs 90 levels and above.

What are the top picks that you are looking at today?
Shilpa Rout: Coal India is one of the picks that I had today. The other one would be SRF. SRF is also showing a lot of momentum. The chemical and fertiliser space is buzzing very strongly. And from here, SRF can touch Rs 2,750 to 2,800. It has already run up from the time I have been giving this recommendation. But yes, on every decline towards 2,640 also, we can buy. Let’s keep a stop loss at Rs 2,600 or just below that, maybe Rs 2,595 and look for targets towards Rs 2,800.

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