Indian equities displayed notable resilience on Friday, with the Nifty approaching the 26,100 mark. Despite global markets, particularly the US, showing weakness, domestic indices have managed to hold their ground, sparking optimism among investors.
CA Rudramurthy BV, MD, Vachana Investments while commenting on the market’s performance, pointed out that, “First of all, we have to understand yesterday on a closing basis Nifty already hit the all-time high and Bank Nifty on a continuous basis is hitting all-time high. Yes, on an intraday basis and on the levels of highest point we might have not done it yesterday but on a close to close basis if you see Nifty decisively hit that all-time high yesterday.”However, he emphasized caution, noting a divergence between headline indices and the broader market. “Look at the broader market, look at even the F&O stocks other than your Nifty and Bank Nifty index, all are in pain. Many of them are asking question like even though market is at all-time highs when it comes to Nifty or Bank Nifty, stock-wise you are definitely not seeing that. And yes, very-very important point, yesterday if you see Nasdaq S&P both closed below even their 50-day moving average which is not a good sign.”
Rudramurthy suggested that investors, especially short-term traders, adopt a defensive approach. “For me it is a time to at least wait on, be at least on sidelines. If you are a very short-term trader, cut your leverage and just wait for opportunity because what Nifty and Bank Nifty are showing and what is there in the reality of most of their portfolio, these are two divergent things. So, when it comes to overall market, I will still be in defensive. Look at stocks which are relatively defensive. Cut leverage in your positions. And yes, Nifty might be at all-time high. Bank Nifty might be at all-time high, but portfolios are not showing that. So, my view is to stay on sidelines, reduce leverage, be in defensive sectors and stocks and do not increase leverage now, do not be in high beta stocks right now and it is time to protect your capital at this moment of time.”
### CA Rudramurthy BV's Top 2 Stock Recommendations for Near Term (November 21, 2025)
CA Rudramurthy BV, a seasoned SEBI-registered investment advisor and market veteran, shared his near-term stock picks during a recent Economic Times interview. With the Nifty hovering near 26,100 amid global headwinds, he advocates a defensive strategy: reduce leverage, focus on resilient sectors like FMCG and private banking, and prioritize capital protection over high-beta plays. Indian benchmarks hit fresh highs, but broader market caution prevails—stay sidelined from volatile names and buy dips selectively.
Here's a breakdown of his two top buys:
| Stock | Target Prices | Stop Loss | Rationale |
|-------|---------------|-----------|-----------|
| **ITC** | ₹435 (initial), then ₹450 | ₹395 | Strong base formed around ₹400; attractive valuations make it a compelling entry. Technical accumulation patterns signal upside potential. Ideal risk-reward long trade—buy now or on dips; available in futures. |
| **IndusInd Bank** | ₹875 (initial), then ₹900 | ₹825 | Clear breakout above ₹825, now consolidating near ₹880 with minor profit-taking. Stands out in the robust private banking sector. Buy at current levels or on pullbacks to ₹830-835; futures available. |
These picks emphasize quality over speculation, aligning with Rudramurthy's view that dips remain buying opportunities in defensive pockets. For context, he sees Nasdaq/S&P weakness as a red flag, urging traders to avoid over-leveraging.
*Note: This is for informational purposes only and not personalized financial advice. Always consult a certified advisor and conduct your own due diligence before investing.*
No comments:
Post a Comment