2 top stock recommendations from Rajesh Bhosale

"We expect a strong up move in State Bank and State Bank can be bought. Currently, it is trading somewhere around 818, 820 levels. It can be bought with a stop loss of 802 and the upside that we are expecting is 855 on the State Bank," says Rajesh Bhosale, Angel One.

Considering levels on the indices, clearly the broader markets are outperforming the benchmarks. But for Nifty and Bank Nifty, there were promising levels which the market participants were viewing for today where the picture looks different, what is your view?
Rajesh Bhosale: So, if we see key indices Nifty and Bank Nifty, so they have started the week on a dull note. Having said that the bias remains positive. Last week, we saw that Nifty gave a breakout from a six weeks’ of consolidation.

So, yes, the bias remains positive. In fact, if there is any dip towards 25,500 to 25,450 that should be a buying opportunity. As we expect Nifty to head towards the levels of 25,800 and then towards the levels of 26,000, by the mid of July.

Similarly, Bank Nifty is trading at all-time high levels and somewhere around 57,000 to 57,200 there was a previous swing high that has been crossed. So, 57,200 will now seems to be a strong support, any dip towards it should be bought and on the highest set 58,000, 58,300 is the immediate resistance that we are expecting.

Let us also talk slightly on a sector specific note and over here I would like to draw your attention towards PSU bank which is in action today. Even index-wise we are seeing it is more than 2.5% up. We definitely want to know your picks, but then as far as technically talking about this particular sector which is in news today and in focus today, what is your take and yes, alongside if you have a pick in this particular sector as well.
Rajesh Bhosale: So, as we said that Bank Nifty is trading at all-time highs, but PSU space did not participate in the recent rally. But now, we are seeing that the PSU banks are showing strength in today's session and the PSU bank index are moving out of consolidation. The front, the heavyweight counter from this space State Bank is also showing a strong breakout. So, on the daily chart, we are seeing a symmetrical triangle breakout on the State Bank. Also, a breakout from its key indicator, supertrend, is witnessed. So, we expect a strong up move in State Bank and State Bank can be bought. Currently, it is trading somewhere around 818, 820 levels. It can be bought with a stop loss of 802 and the upside that we are expecting is 855 on the State Bank.

Is there any other technical pick from your end?
Rajesh Bhosale: So, we are bullish on Muthoot Finance. So, if you see Muthoot Finance, the stock has seen sharp rally. During the start of June month, it was trading somewhere around 2100 and from that 2100 to the stock had moved toward 2600. Last few sessions have been of consolidation. But now we are seeing a resumption of up move in today's session. So, a flag pattern is visible on the daily chart. So, Muthoot Finance can be bought as we expect the resumption of up move. It is trading somewhere around 2620 with a stop loss of 2565. It can be bought and the target that we are expecting is 2720.