"My top two picks would be Tata Motors and ITC for 2025," Milan Vaishnav, CMT, MSTA, founder of Gemstone Equity Research & Advisory Services said in an interview with Moneycontrol.
According to him, while Tata Motors is seen putting a potential bottom in place, ITC is relatively much stonger and may become a good addition in the portfolio if a slightly risk-off situation plays out in the market.
Tata Motors has lost almost 38% of its value from the peak formed in July this year. "The RSI (Relative Strength Index) is showing a bullish divergence against the price. One can accumulate Tata Motors from current levels even if it drifts a bit lower," said Milan who spent nearly two decades in the capital markets.
Do you expect 50-week EMA to act as a crucial support for Nifty 50 and Bank Nifty going forward or will it get broken in coming weeks?
I am looking at this from a slightly different perspective. I would focus on Nifty more as it is a barometer of market in general and would influence other key indices as well. The Nifty tested the 50-week EMA in November after it completed a painful mean reversion process. After the test of this crucial support, the Nifty rebounded over 1,000 points over the next four weeks.
What is slightly problematic is that what was gained in four weeks through a technical rebound was given up in just one week when the Nifty lost over 1,180 points in the week ending previous Friday and this makes the market technically weak.
So rather than focusing on 50-week EMA, I would focus more on the 200-DMA as the Nifty has meaningfully violated it. The 200-DMA is placed at 23,847 and Nifty will have to cross above and stay above it if it has to avert any weakness. The longer we stay below this crucial point, higher are the chances that we may end up violating the 50-week EMA eventually.
The point is, we need to watch Nifty's behaviour against the 200-DMA very closely. If this happens, the Nifty Bank will get automatically taken care of as it stays relatively stronger than the Nifty.
Is there any Bullish Harami kind of pattern formation in Nifty FMCG on weekly charts? If yes, then is it the right time to take exposure to space?
Though not very visually apparent and technically classic, there is a formation of a Bullish Harami on the weekly charts as of week ending previous Friday. So far as taking exposures into FMCG sector is concerned, that should be done on a highly selective note. There are good stocks that show mild bullish divergences on their lead indicators. Such stocks should be accumulated. An all-out buying is not advised but staggered accumulation should certainly be done while staying highly selective.
Has Tata Motors bottomed out?
Tata Motors has lost almost 38% of its value from the peak formed in July this year. While it remains in a continuing downtrend, it has shown initial signs of a potential bottom formation. This appears from the RSI (Relative Strength Index) that is showing a bullish divergence against the price. While the price has formed a lower low, the RSI has not, and this has led to the development of a bullish divergence. One can accumulate Tata Motors from current levels even if it drifts a bit lower.
Do you expect Paytm to record significant rally if it decisively crosses Rs 1,000 mark where the long horizontal resistance trendline placed?
Upon examination of long term weekly charts, Patym has formed a classical double top at Rs 1,000 level. The stock is steeply overbought as well and this may lead to some near-term consolidation as well in the price.
A move above Rs 1,000 level and sustenance above that level will lead to a major breakout in the stock. However, some consolidation would be needed for a healthy rally.
Is the Amber Enterprises looking overbought?
Yes, Amber Enterprises is overbought. The stock remains in a strong ongoing rally. One can stay invested in the stock while trailing their stop-losses higher.
Your top 2 picks for 2025?
My top two picks would be Tata Motors and ITC for 2025. While Tata Motors is seen putting a potential bottom in place, ITC is relatively much stronger and may become a good addition in the portfolio if a slightly risk-off situation plays out in the market.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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