2 top stock recommendations from Aditya Arora

” Reliance is the heaviest weighted counter in Nifty and it has been a thing that whenever market needs a strong support when every other counter is lacking strength then Reliance comes back into action,” says Aditya Arora, Adlytick.

Have we missed the big move on Reliance or it is just breaking out? Should any pullback of 40-50 points be used to get in back because the giant is just waking up?
Reliance is the heaviest weighted counter in Nifty and it has been a thing that whenever market needs a strong support when every other counter is lacking strength then Reliance comes back into action. So that is what has happened today when Reliance is plus 3 to 4% and it is actually forming very bullish patterns. We have not missed anything and it is just coming out of a consolidation. So 2730, 2750 is actually the resistance zone if that is taken out then probably Reliance is headed towards 2850 and 3000 till Diwali or till end of the year. And you rightly pointed out that other sectors like metals are doing well. So it is very important to note that there is always a bull market within a bull market certain stocks and sectors will always do well. So we have a lot of steam left on very stock specific ideas.

What is your view on the metals, anything specifically that you like in the metal space?
I think metal index as such is again forming bullish patterns and if we look at the global markets and look at other asset classes like dollar index, which corrected from 103 to almost 102 in last two days. So that is adding positive strength to the metal counters and this is just the beginning because they are almost forming a V-shaped reversal or W-shaped reversal on the chart patterns.

And this could be just start of a fresh bull market. If you look at the market leader like JSW Steel, it is almost close to 52 week highs and Tata Steel is doing well.

So all the big counters are doing well and the global metal counters are also doing quite well. So that is actually adding confidence and there is a long way to go. And metal index could actually go to 7000 levels. Currently, it is trading at 6350.

Out of the beaten down metal counters, let us do some tech check. How are the steel ones looking at like JSPL, JSW and SAIL?
JSPL is looking quite good. I had recommended the stock even before also and since then it has run up almost 10%. Still, the stock looks quite good and there could be upside of 10 to 20% on Jindal Steel. SAIL is like that lower quality stock, not the higher, very good quality one, but low high beta, low quality counter, which actually does well when a bull market starts in a particular sector. So that has also upside of almost 20 to 30%.

Also just let us talk about some other names, in terms of FMCG side, what is your view in terms of something like a Marico that was not performing in the past in terms of the rally that we saw coming in with the FMCG players. For Marico, do you think it is now that something that you would look at something like that in FMCG?
Marico is trading around its standard deviation level, which is 520, 525. So it is exactly the important support for Marico. If it sustains above 525 level and forms a base over here, then again, it can shoot up till almost 540 to 560 kind of level. So I would consider this stock as neutral to a slightly bullish counter.

Lastly, if you could tell us any of your top picks that you are looking at right now.
My top picks are from the metal space only. I think this is one of the sectors which one should capitalize on because I think till Diwali auto sector, power and metal can do really well. So my pick is Hindalco right now, which can be bought at Rs 430. Rs 410 should be the stop loss. Rs 470 to Rs 500 should be the target. Second one JSW Steel, could be bought at Rs 806, Rs 770 should be the stop loss and Rs 860 to Rs 895 should be the target.