stock picks: Nifty shows positive reversal; experts eye buying opportunities on dips

After a volatile start to the week, the Nifty index has shown signs of recovery, trading flat at 24,840 on Friday. Market experts point to technical cues suggesting a possible upward momentum in the near term.

CA Rudramurthy BV, a seasoned market analyst, highlighted the shift in market patterns over recent sessions. “Last week on Friday we had this pattern of continuously falling top and falling bottom and the last trading session that was on October 1st, we saw a clear reversal in the pattern and Nifty has now made a higher top and even today making an higher top is very-very positive. So, we are seeing that reversal signs on chart and to be very specific on numbers, Nifty holds a key support now at 24,580. So, this has been the low which markets saw on October 1st. So, I will be a buyer in this market for sure.”

Rudramurthy emphasized that while macroeconomic and global factors remain in play, recent domestic measures provide optimism. “Keep aside all the macroeconomic factors and even the global situation and the Trump tariff has now become more or less a joke and in fact, all the changes whatever we are seeing now in terms of both macroeconomic wise as well as locally what we are seeing, the push what we have seen from government in terms of GST cuts and also RBI push in terms of liquidity what we are seeing, they are all very-very positive for me. Finally, we have to remember, share price is always a slave of earning and if earnings are good and the commentary which is going to come out if that is good, I am sure markets will bottom out.”

On trading strategy, he recommends using dips as buying opportunities. “Unless 24,300 breaks, I will use all dips as a buying opportunity and for a short-term trader have a stop loss of 24,580 on Nifty and similar levels on Bank Nifty is at around 54,200 and every dip is a buying opportunity. In fact, Bank Nifty can relatively do better than Nifty.” He also highlighted sectors poised for outperformance, including metals, e-commerce, defence, PSU banks, and new-age platform stocks.

Rudramurthy also shared his stock picks. “Already long time I have been recommending stock Nykaa from 180, 200 zone and it has outperformed a lot. So, in the same sector I am just trying to pick more stocks. In fact, Paytm is one stock from Rs 800 I am recommending, available in F&O, even at current market price it is a great buy or for that matter Eternal also looks very good. So, Nykaa, Eternal, Paytm, these are all stocks from the same sector more or less and I like all of them and IndiGo is one stock which can definitely outperform.”

For IndiGo, Rudramurthy suggests buying near 5,500 levels with targets of 6,000 and a stop loss at 5,500. Eternal, he notes, offers a similar opportunity with initial targets of 360, eventually reaching 400, and a stop loss at 315.