2 top stock picks from Rupak De for next week

"For Bank Nifty, I would say that Bank Nifty found resistance around its all-time high and, however, the sentiment looks very much positive, it has closed more than six months high, so the sentiment remains positive till the time it is remaining above 53,600 and on the higher end if Bank Nifty moves beyond 54,500, then further firework might be seen in the short term," says Rupak De, LKP Securities.

Let us talk about the kind of levels that we are expecting to see on the benchmarks over the course of next week, given that we have yet another truncated week coming in. Some global markets are also closed on Monday on account of Easter. Amid the global volatility, everything that has been happening, at least if you could give us a sense of the kind of levels that we can watch out for Nifty and Nifty Bank because stellar run-up across both of these indices over the course of the week, how sustainable is this looking on the charts?
Rupak De: So, last few days has been fast and furious where Nifty added about 10% in the last few days and giving a breakout above the previous two swings, swing highs, swing on a closing basis.

So, overall sentiment looks very positive and till the time Nifty remains above 23,300 the sentiment might remain positive and buy on dip strategy will be favoured and on the higher end Nifty might move towards 24,100.

Once again if Nifty sustains above 24,100, then it is likely to move towards 24,550. So, overall sentiment looks positive, till the time it remains above 23,300.

For Bank Nifty, I would say that Bank Nifty found resistance around its all-time high and, however, the sentiment looks very much positive, it has closed more than six months high, so the sentiment remains positive till the time it is remaining above 53,600 and on the higher end if Bank Nifty moves beyond 54,500, then further firework might be seen in the short term.


I wanted to take it across to you and get a sense of what you think about the FMCG pack because there is lots of moving parts when it comes to the tariff story. There is a lot of tariff commentary that we have seen come in with regard to containers, dry bulk shortage also getting a little more acute is something that we are sort of pencilling in at this point. What do you think about the entire FMCG pack in that light then?
Rupak De: So, FMCG after prolonged underperformance, they are getting ready to perform well. Like in the short term, there is a resistance for the index, 56,700 would be the resistance for the index.

If the FMCG index moves beyond 56,700 decisively, then the performance from the space might be expected on the higher end, 5-10% kind of upside movement on stock basis we can expect. However, the mid-term picture is not that good at the current juncture. We need to go for short-term positioning in the stocks and wait for further clarity on the FMCG front.


I wanted to get an understanding of what you think about the auto pack as well. What do you think about Nifty Auto as well? Against the backdrop of the announcement that has come this week when it comes to the pause coming in, as far as auto tariffs are concerned, that is something that US President hinted towards. He wants to be helping automakers and carmakers at this point. He has also indicated that he wants to provide some semblance of resilience to some of these companies as well. So, against that backdrop, what are you making of the entire auto pack as well?
Rupak De: So, Nifty Auto has formed an interesting pattern on the daily chart. There might be some recovery in the auto stocks in the near to short term. On the daily chart of auto index, I find that the auto index has formed a positive divergence on the RSI and it is likely to find a very minor resistance around 21,550 kind of level. If the index moves beyond 21,550, then there might be some significant rally towards 23,000. So, I expect sideways to positive movement in the near to short term.


Share with us the picks that you have given at the moment. What is looking good when it comes to the stock specific front? Where are you seeing some pockets of value?
Rupak De: So, I have two stocks to share. First one is Eternal, the stock has given a falling wedge breakout on the daily chart and indicator RSI is indicating a positive momentum in the short term. On the higher end, the stock might move towards 245 and a stop loss can be placed below 220. The other stock would be GIC RE. The stock has been recovering in the last few days. And it has been sustaining above the important moving average and the current momentum might continue in the short term and on the higher end, 470 might be the target and keeping a stop loss below 417.