What are your top picks for trading ideas on 05 August? I am asking because Sensex is falling one day and bouncing next day?
Answer
Answer
On 04 August, the Sensex gained 748 points largely helped by Reliance and HDFC Bank. However, the level of 11,200 on the Nifty continues to remain a resistance for the time being. Here are some trading ideas for the 05 August 2020.
· It is time to book 12% profits in Cadilla and shift to Biocon at Rs.413 for targets of Rs.470 as the full value of Biocon Biologicals and Syngene is not yet reflected in price.
· I suggest aggressively buying into HDFC Bank under Rs.1050 for targets of Rs.1159 as the valuation of 19X is extremely compelling considering its growth and asset quality.
· Buy defence stocks as India readies to spend Rs.125,000 crore on in-sourcing defence manufacturing. Buy Bharat Dynamics at Rs.420 and HAL at Rs.948 for 20% upside.
Overall Nifty may still face resistance at 11,200 but specific themes like rural theme and defence theme will be the themes to play for.