We are in a sell-on-rise market; accumulate Paytm and Nykaa for long-term gains: CA Rudramurthy BV

Time of India

6 days ago

CA Rudramurthy BV
, MD,
Vachana Investments,
says till we cross 56,000 for
Bank Nifty
and 24,800 for Nifty, this will remain a sell-on- rise market. This is a good time for long-term investors. Paytm and Nykaa stocks are recommended for portfolio inclusion. Accumulate Paytm around current levels, targeting Rs 1,350-1,500. Nykaa is also a strong buy at the current price. Investors can accumulate on dips, targeting Rs 245-250. These targets are expected within six months to one year. Risk-reward favors buying these
new-age stocks
Yes, it is a dull day for the markets and the last trading session of the week. What should be the strategy for the remaining half of the day?
CA Rudramurthy BV:
Sell-on-rise is a simple strategy which the market is holding on to and even as for Nifty, on 12th of May, 24,350 was a very, very crucial support for Nifty. Yesterday, we went to those levels and saw a bounce, but that bounce was more to do with a short covering that we saw because of an expiry day and now we are again back to lower levels and the market is definitely a sell on rise for a very short term.
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If we break the 24,350 level, further lower levels closer to 24,000 and then even 23,800 is possible. The market is more sector and stock specific, but we should definitely accept that it is a
sell-on-rise market
and even though FIIs are short over 90%, there is still no respite whatsoever and unless we get a trigger – either the Trump tariff ending and Trump becoming more friendly with India or any other trigger which can make those shorts get covered, this market is still a sell- on-rise and for Bank Nifty crucial levels, right now the support is at around 56,000 and we are closer to those levels. Once we break that, another 1,000, 1,500 point move on the downside can be seen.
So, till we cross 56,000 for Bank Nifty and 24,800 for Nifty, this will remain a sell-on- rise market.
What are going to be your picks? There are two buy calls coming in. So you have long bets. What are these long bets?
CA Rudramurthy BV
: These are great times for long-term investors to buy good stocks for their portfolios. Look at this quarter's results; where the results were good, but stock prices have gone nowhere, those are the stocks I would prefer to buy on every dip for my portfolio. One such stock is Paytm. I will accumulate Paytm at current market price and on dips to levels closer to 1,000 with a stop loss of Rs 970. I am also looking at targets of Rs 1,350-1,500 which can come over the next six months to one year. That will be a 30-50% rise from the current market price.
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Another stock which looks very strong to me, and where risk-reward is favouring a buy at current price is Nykaa. I am bullish on new age as a sector and Nykaa is a good buy at current market price and on dips to levels closer to 200, accumulate Nykaa for your portfolio, keep a stop loss of 190 and look at targets of Rs 245-250 to come from current market price.
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