2 top stock recommendations from Aditya Arora

"I have picked up two stocks from the consumer basket. Bata which had gone into a consolidation is now coming out of a range so Bata could be bought at Rs 1732, Rs 1652 should be the stop-loss and Rs 1810 to Rs 1900 should be the target," says Aditya Arora, Adlytick.

What are you picking up in terms of an indication that we could be understanding from the broader markets, do you think this outperformance is over now or could this continue for the broader markets?
I think this outperformance could continue for some time for two to six weeks. Our estimate is that till early October or end of October we could be doing well in the mid cap and small cap space. I like chemical, metals and sugar space.

Tell us just you know top recommendations
I have picked up two stocks from the consumer basket. Bata which had gone into a consolidation is now coming out of a range so Bata could be bought at Rs 1732, Rs 1652 should be the stop-loss and Rs 1810 to Rs 1900 should be the target.


Second one Page Industries, a market leader, that could be bought at Rs 41500, Rs 39500 should be the stop-loss and Rs 45,000 to Rs 46,000 should be the target.

I just want to understand your take coming in on these railway stocks they have also seen a very sharp up move in the recent time, any view on this one anything that you would like to pick or maybe one should start booking profits, what is your view here?
This space has been buzzing since a long time and I think probably we are heading towards exhaustion in this space. RVNL is one of the stock where I think profits should be booked because there could be some 20 to 30% correction in medium term so I would like to take chips off the table in this counter.

Is that the coming in for the most of the public sector entities because that is where the max amount of rally has happened and they are taking a turn on an everyday basis one day it is railway stocks, today of course the shipping companies your Garden Reach and Cochin Shipyard of the world, then comes the PSU banks and oil marketing companies as well? Which is that space within PSUs where you would book profits or where you will add positions?
Railway stocks as I mentioned earlier RVNL is one of the counters where I think it has run ahead of valuations and there could be some exhaustion in the counter so that is the space where I am not very bullish.

And in PSU metal space I am bullish so NMDC is doing quite well, SAIL is doing quite well and metal sector is coming out of a consolidation and it is starting a fresh leg of rally. If we see further correction in dollar index in the international market then this sector could definitely outperform and I think PSU metal space would do well.