2 top stock recommendations from Gaurav Bissa

economictimes.indiatimes.com:

«There is this dichotomy and I think this is going to stay. There is going to be some long spread that we are expecting in Nifty and Bank Nifty for couple of trading sessions,» says Gaurav Bissa, VP, Incred Equities.We have been seeing a weakish trend when it comes to the benchmark indices but the broader market continues to perform well. So how are you seeing the markets here? What is your outlook? See the trend as you rightly mentioned has been on the downside and on hourly charts it was clearly the downtrend forming the lower tops and lower bottoms and we have been bearish overall.

The second point that you made is also quite valid where the broader markets have not fallen much, they have been rather stable and this has been difficult for us also to explain to the clients as well when at Incred that we have been bearish on Nifty, we have been having more of a short trades or call option writing trades as far as indices are concerned but we were buying selectively stocks from midcap and small cap basket. So yes there is this dichotomy and I think this is going to stay. There is going to be some long spread that we are expecting in Nifty and Bank Nifty for couple of trading sessions.

Overall trend remains negative but if you look at Nifty, it is bouncing from its 50-DMA on daily charts and that can give a good bounce back. For Bank Nifty, it is bouncing from 21 exponential moving average on weekly charts so that can also see a bounce back. So maybe 1.5%-2% bounce back from the current levels can be seen and then the resumption of downtrend is likely to be seen.