Arihant Capital’s Mileen Vasudeo on 2 stocks to bet on now

The Nifty is still trading below the 200-day moving average line. The simple 200-day moving average line is at 17,540 levels. So, there is a chance that we could consolidate at current levels. But slowly and steadily, we are likely to hit and test the 200-day moving average line going forward, says Mileen Vasudeo, Senior Technical Research Analyst, Arihant Capital Markets


What is your view on the markets and what is the way ahead?
If you see on the Nifty chart and if you see the Friday’s trading session, we opened up with a gap and the gap area is in the range of 17,204 to 16,940 levels. This gap area is going to act as a very strong support going forward because we have come out of the consolidation phase; however, the volumes in the cash markets were not higher on Friday's trading session. Still more confirmation is needed for the market to go higher. We are still trading below the 200-day moving average line. The simple 200-day moving average line is at 17,540 levels. So, there is a chance that we could consolidate at current levels. But slowly and steadily, we are likely to hit and test the 200-day moving average line going forward.

What about the stock specific recommendations?

Mileen Vasudeo: Bajaj Auto is making a higher top, higher bottom formation and it is clearly an outperformer. It is outperforming the benchmark indices. One can buy at current level, keep a strict stop loss of Rs 3,860 levels. The first target would be somewhere around Rs 4,160. The second stock which today is showing signs of strength is RVNL, currently trading at Rs 73 or Rs 73.60. Keep stop loss at Rs 67 and the target price would be Rs 90 to 105 in a couple of weeks’ time.