2 top stock recommendations from Aditya Arora

"I think the 1000-point rally which will come, it would be very broad based because actually this rally is being led by Nifty Smallcap and Midcap," says Aditya Arora, Adlytick.

Tell us, which side of the argument are you on – the one who believe we are heading into turbulent zone or further addition to the rally?
I am in the second camp wherein I believe that market had gone into a deep consolidation like we saw market doing a lot of zigzag movement for almost 20 months now. So, we saw the top in October 2021 and technically if we look at the charts then they are forming almost a rounding bottom twice and technically and historically that has been very positive for the market and we saw a stellar rally post COVID crisis wherein we saw Nifty rallying from 7500 to almost 18,800 and then market took 20 months to consolidate, took 20 months to digest that kind of euphoria wherein everybody was getting in and everybody was putting in the chips at very high valuation.

Now, earnings have caught up and crisis is behind us. Ukraine crisis is behind us. All the news is good. Bond market is pricing in a good economy going ahead. All the brokerage houses are saying that the times are good. Probability of recession is low. So, I think good times are ahead and we are in a very sweet spot and in fact, we are entering a glorious time for Indian stock markets wherein the breakout would come at 18,900, therein further we can rally 1000 points going forward.

Let us talk about two-three stock ideas from your side which you think have very attractive risk reward to participate in that 1000-point rally which you see on Nifty from here on.
I think the 1000-point rally which will come, it would be very broad based because actually this rally is being led by Nifty Smallcap and Midcap.

Although large caps have been quite stagnant, Reliance has not done quite well but small cap index and midcap index is rallying one way from March end, so it would be led by small cap and midcap.

And further I would like to go to certain quality stocks also, so it is a mix and match between small cap and large cap.
So, the first one which I would choose would be Ethos which is actually in luxury watch wear, so that could be bought at Rs 1322 and Rs 1220 should be the stop loss and target should be Rs 1490 and Rs 1600.

The second pick is from metal pack. I think the metal sector has been a sleeping giant and has not done quite well, again a theme which did quite well in COVID and when the Fed started hiking interest rates and Fed was hawkish, all these commodity related sectors came in the back seat.

Now, they are coming back in the action and all the metal stocks are breaking out and copper has also bottomed out and it is inching up slowly.

So, metal sector could be in limelight for foreseeable future for few months and months. So, Tata Steel can be bought at Rs 113. Rs 108 should be the stop loss and Rs 120 and Rs 130 should be the target.


But I want to just pick on one of the names that has been buzzing in trade specifically in this week as well, when you look at that is KPI Green Energy. What is your view in terms of the charts coming in for this one because when I am checking historical data, even last week the stock has seen almost a gain of around 12%. On Monday itself it was up 18%, today it is trading with gains of almost 7-8% as well. What are the charts indicating for this one?
I think charts are clearly saying that energy sector is going to be the leading sector whether you look at KPI Green or you look at the lowest of the lowest quality stocks like extremely speculative counters like Suzlon which is also doing well on back of good fundamentals in the industry or you look at the public sector companies like PFC, REC, they are also doing quite well.

So, definitely it is a very positive sign that going forward. Energy sector is going to lead and KPI Green is one of the market leaders over there. Charts are extremely bullish. It is currently trading at Rs 692, I think there is more steam for 5% to 20% rally in the medium term.