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Bullish on these 3 stocks for next week: Kunal Bothra - Russel, M&M Finance % Lupin.Edited excerpts:Do you think the markets right now are on tenterhook about the lack of direction or do you see some sort of a decisive trend? I would say that we are in a range kind of a phase on the indices. On one hand, in the first half of last week when the indices corrected, most of the sectors witnessed correction. Then there was a bounce-back for two days. When you see such a sharp bounce after a sharp fall, you expect a bigger retracement to happen and we retracted almost 50%, 52% odd for the indices in the last two days of the recovery. In terms of technicals, I still believe that we have not crossed the big hurdle or a resistance point. Bank Nifty is still underperforming and that is one of the bigger concerns for the markets overall. Even with rupee strengthening last week, if the Bank Nifty continues to underperform, the weight of the sectors could pull the Nifty down somewhat. I believe one has to be a bit cautious, trade on stocks which are on high momentum but if the index manages to breach some support levels, then chances are we might start a short-term downtrend on the indices. Balkrishna Industries was a standout underperformer. What exactly is your reading on the charts? Also what is your view on M&M Financial? Balkrishna Industriesâ monthly charts are not very encouraging. In the last one week odd, when we saw the stock falling from Rs 1,450 levels to near Rs 1100-1120. On short-term charts, indicators are oversold and the stock is taking support around the 200-day moving average. For a couple of days, I would expect the stock to stabilise around this Rs 1150 mark, maybe give a sign of a bounce as well. But when I scan through this on the monthly charts, there are some serious break downs which have happened in this five-day, six-day fall for Balkrishna Industries. That could result into the stock making a pattern of lower highs and lower lows. As a positional player, I would expect the stock to gradually grind lower. But from a very immediate perspective, I expect that the stock should bounce towards say around Rs 1220-1240 levels in next one week odd. For M&M Finance, the recovery which transpired on Friday was extremely positive and largely in the context of that recovery, the stock could probably open short-term upside channel around that 485 to 490 zone could be a near-term target. It has largely been a stock which has been range-bound for the last few months. The fact that it has hit the support band and bounced once again indicates that this range phenomenon still exists for M&M Finance. What is your outlook on the Nifty Bank? In the coming week, are we going to see this sort of correction get more exaggerated? Yes, I believe if the correction transpires, then it should be led by Bank Nifty. Now there are two reasons for that. One, in August and especially in the second half of August, the Bank Nifty got stuck in a range, 27,800 as a support and closer to 28,300, where it saw multiple resistances or attempts towards breakout, but it failed to do that. So, there was this 700-600 point range. When the Bank Nifty broke that 27,800 mark, there was a sharp correction. That changed the nature of Bank Nifty. Look at this in terms of the open interest positions which transpired. There were fresh shorts which were building up when Bank Nifty broke that crucial support level. Coupled with both of these parameters, technicals and derivatives, I believe that Bank Nifty should continue to drag lower and you might see the index maybe testing that 27,000 mark sometime next week or the week after that. What about your picks â" three buy calls? Yes and most of them are midcap names. The first one is a buy on McLeod Russel. We saw very strong price volumes breakout happening on Friday for McLeod. Collectively, the last one month we saw some extremely high volume patterns for the stock and it has moved up from Rs 125 to Rs 160 plus levels now. I believe at current levels also. it looks very attractive. So that is a buy, Rs 180 as a target, stop loss at Rs 154. The second would be M&M Finance. We discussed this stock earlier and I sense that the stock has hit back to its key support levels around that Rs 445-440 mark and now it is seeing a process of bounce again. That is a buy, Rs 484 is the target, stop loss at Rs 442. The third one would be a buy on Lupin. We cannot miss out on the pharma rally. Lupin has given a strong breakout on the weekly charts as well. That is also a buy, Rs 1040 as a target and stop loss at Rs 930.
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- North Korea said the request to circulate the document to the 193 UN member states "shows full determination of North and South Korea to keep…
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- Trump warns of 'devastating' taxes on Canadian cars
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- Article at EconomicTimes.com with article id : 65728846
- WASHINGTON (AP) â" Despite dire U.S. warnings, the Trump administration has little leverage to stop Russia, Iran and Syria pressing ahead with a massive military assault against Syria's northwest Idlib province.
- Article at EconomicTimes.com with article id : 65728977
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- Copyright:(C)Sat 08 Sep 2018, 10:22:012018Sat 08 Sep 2018, 10:22:01 Bennett Coleman & Co. Ltd, http://info.indiatimes.com/terms/tou.html
- Lashkar militant killed in AnantnagThe slain militant has been identified as Bilal Ahmad - a resident of Tantraypora Yaripora of the neighbouring Kulgam district, the spokesman said.
- Duck farming has potential to boost rural livelihoods if done as part of unified program of fish and rice farming.
- Copyright:(C)Sat 08 Sep 2018, 10:12:512018Sat 08 Sep 2018, 10:12:51 Bennett Coleman & Co. Ltd, http://info.indiatimes.com/terms/tou.html
- Delhi woke up to a crude shock today as fuel prices hit a new lifetime high after they witnessed yet another hike across the country. Petrol prices went up by 39 paisa per litre and Diesel prices saw an upward trend of 44 paisa per litre in Delhi. With the latest hike in prices, Petrol crossed the Rs 80/litre mark in the national capital. A litre of petrol in Delhi now costs Rs 80.38 - a record high. It costs Rs 87.77 in Mumbai. Diesel is now priced at Rs 72.51 a litre in Delhi and Rs 76.98 per litre in Mumbai. Nationwide strikes have been announced by the opposition parties across the country next week over record-high fuel prices which they blame on high taxes imposed by the government.
- On Wednesday, Finance Minister Arun Jaitley had remained non-committal on cutting excise duty to cushion spiralling petrol and diesel prices, saying international oil prices are volatile and have not shown any linear movement.Opposition Congress has demanded that the Centre cut excise duty as was done by previous governments, which cut rates whenever international oil prices shot up.Almost half of the retail selling price of the two fuel is made up of central and state taxes. Prices have been on fire since mid-August, rising almost every day due to a combination of a drop in rupee value and rise in crude oil rates.The Centre currently levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. On top of this, states levy Value Added Tax (VAT) - the lowest being in Andaman and Nicobar Islands where a 6 percent sales tax is charged on both the fuel.Mumbai has the highest VAT of 39.12 per cent on petrol, while Telangana levies the highest VAT of 26 per cent on diesel. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.Prices in Delhi are the cheapest in all metros and most state capitals due to lower sales tax or VAT.
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Saturday, September 8, 2018
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