2 top stock recommendations from CA Rudramurthy BV

"Apart from geopolitical tensions, the Trump tariff issue, and a slightly disappointing results season this quarter, if these external factors improve and earnings pick up in the coming quarter, along with more liquidity coming in, I am confident this market will reach all-time highs very soon," says CA Rudramurthy BV, MD, Vachana Investments.

I want to understand the trend with you now. We are below 25,000 today, but at least this week, we have comfortably sustained levels above that. What is your view on Nifty and Bank Nifty?
CA Rudramurthy BV: We have seen a swift move—from 24,350, Nifty went all the way up to 25,150. That’s an 800-point gain in hardly one week. Now, consolidating and seeing a 100–125-point correction is very healthy for this upward move.

The bold GST initiative taken by the government is very positive. For me, the market will now consolidate, and every dip is a buying opportunity—not just because of GST, but also considering the RBI rate cuts in the last meeting and the positive stance in the current one.

Apart from geopolitical tensions, the Trump tariff issue, and a slightly disappointing results season this quarter, if these external factors improve and earnings pick up in the coming quarter, along with more liquidity coming in, I am confident this market will reach all-time highs very soon.

Buying on every dip is a great strategy right now. Nifty will be relatively stronger than Bank Nifty, and support for Nifty will emerge closer to 24,850—the low we saw on 18th August after the gap-up move post-GST announcement. So, in the very short term, 24,850 is strong support. Buy every dip to those levels—Nifty will outperform Bank Nifty.

For Bank Nifty specifically, PSUs are performing much better than private banks. Support for Bank Nifty will be around 54,900–55,000. Use every dip as a buying opportunity, but be very sector- and stock-specific in this market.


What stocks are on your radar at present?
CA Rudramurthy BV: The new-age sector is doing fabulously. Even in a weak market, these stocks are outperforming. It’s a matter of choice—you can pick Paytm, Zomato, Eternal, or Nykaa. They are all performing well. As a sector and theme, I see strong potential from these levels.

I have been recommending Paytm continuously from the 850 zone, and it remains attractive even at current market prices. However, given the big move already, I am recommending Nykaa at current levels.

For Nykaa, buy at current levels and on dips to 220, keep a stop loss at 218, with targets of 250 and eventually even 300 over a one- to two-year period.

The hotel industry also looks strong. Take Indian Hotels, for example. The domestic theme is very strong, and international issues like Trump’s tariffs don’t significantly impact this sector. Indian Hotels has already broken out above 790. Current market prices offer a good risk-reward trade to go long, with a stop loss at 785 and initial targets of 850 and then 900.

Overall, the hotel sector and new-age sector themes look strong. A few other sectors also stand out: pharma, chemicals, select auto, and select FMCG. These sectors offer good stock-picking opportunities.

So, in short, this market is a “buy on every dip.”