Kunal Bothra’s top 3 picks for 1st trading day of 2022

We all know what struck in the first half of 2020 and then the markets were taken up by a surprise. But 2021 is where the sentiment improved quite strongly. It was a decent finish because on Friday we finally managed to come back into the green for both key indices and many of the individual sectors as well. But, the entire year was full of positivity except for the last hiccup in the last couple of months.

Overall it was a very very good year for equities. My sense is that rather than one being extremely pessimistic and hoping that the markets would get back into a corrective phase I think it is now time for many investors who have been either sitting out or may be would have probably booked out profits at higher levels and wanting to enter to start constructing a portfolio for themselves to bet on equities.

Even though I believe that the markets are choppy right now, the next one to three months should be taken as a good time to try to construct a decent portfolio to try and create positions in what I believe could be a very strong bull market over the next three to five years. In the short term, we also expect some positivity coming across for Bank Nifty. We expect emergence of positivity coming in the private sector banks.

In 2022, we could try and get into a constructive mode yet again, but I believe that platform 2021 has already given us. I think it holds a lot of potential from a longer term perspective rather than just from a very short term view.

What would your stock-specific recommendations for January 3, 2022?
I will look at three stock ideas and recommend them. First one is Vodafone Idea. The stock looks exceptionally strong and it ended 2021 on a much higher note for itself so expecting strong follow through price action for the stock positional targets of Rs 20 for stop loss could be traded hard Rs 13.50. from the FMCG pack is also making a strong comeback momentum. Indicators have given a breakout, which means that the prices should also try and imitate a very similar kind of a action for itself so suggest a buy on HUL targets of Rs 2,550 stop loss at Rs 2,260. Motors is the third stock which had been a big underperformer but it is coming back in quite strong momentum zone for itself still trading below 200-day moving average. I believe that in the near term the stock can try and play a very strong catch up for itself. I would suggest a buy on Eicher Motors Rs 2,750 as a target stop loss Rs 2,500.