2 top stock recommendations from Sneha Seth

"I would suggest in case of any declines, one can go ahead and go long. But at this level, if someone is holding a position for an intraday perspective, they can book profits in the index options trade," says Sneha Seth, Angel One.

Firstly, 23,000, we have managed to scale past this particular level. What does it mean for Nifty 50 and we are sustaining those levels, do you believe that in the second half we are in to build on to some of these gains or rather keeping in view that today is the Nifty weekly expiry, I believe that could have some impact on the index?
Sneha Seth: If we look at market, yes, we have seen index showing strength, especially in last three sessions. We have seen addition of long position, at the same time the put writers have been shifting higher, so that is a positive development.

For now, I believe as we are heading higher, 23,000 to 23,100 there is a small resistance zone at this zone. Once we surpass this, then 23,300 is the level to watch out. But I believe at this point in time, especially considering the weekly expiry session, there can be some profit taking at the higher levels.

So, I would suggest in case of any declines, one can go ahead and go long. But at this level, if someone is holding a position for an intraday perspective, they can book profits in the index options trade.

On the charts, which sector is looking poised for a very good strong breakout? We have seen select sectors actually see up move over the last few trading sessions for a case in point being realty index or the metal index. They have been seeing some sort of sustained up move. But according to you, which one is the one that will hold on to that up move?
Sneha Seth: At present, I believe oil and gas sector as a whole, if you see, this overall index was trading, had made a nice base and then it was consolidating in the range. Now, it has been showing some fresh buying interest and has managed to surpass the resistance zone. So, I believe here we may see an extension of up move at least for a week or so.

So, one can focus on this space as a whole. Metals have been doing good. They are still good. In fact, at this point in time even, I believe many stocks have good scope from year on even like Hindalco or Vedanta, these counter looks good. So, metal and oil and gas these are the sectors which can be looked.

Apart from this, I believe banking is also good. We have seen a very strong move. If you see recently, Nifty was not performing. Once we have seen banking index taking a lead, Nifty has managed to surpass its resistance zone in last two sessions. So, support from banking index is also very important and I believe for an up move, the banking stocks should be doing good, so that is also the space one should be looking at.

Help us with your stock calls right now.
Sneha Seth: So, I was mentioning about oil and gas segment and I am liking BPCL from this space. It was trading below the 20-dma on the daily chart from couple of sessions. Now, it has managed to surpass that and it is holding that support zone at this point in time.

So, I believe we may see an extension of this up move. The target would be around at least 284 will be the target and the stop loss can be maintained around 263.

Apart from this, from pharma space, I am liking Cipla. Here, the counter has given a decent up move recently and I believe looking at the overall chart structure wherein the resistance of 1490 has been surpassed, this resistance zone should be acting as a support for now.

So, I would suggest buying this counter with a strict stop loss, of around 1490 would be the stop loss over here and the target will be around 1575.