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    Kunal Bothra’s top 2 trading bets for next week

    Synopsis

    Till 10,700 as support level or 10,900 as resistance level is breached, Nifty to stay range-bound.

    Kunal Bothra-NEW-1200
    Independent market analyst Kunal Bothra tells ET Now that he is bullish on Apollo Hospital and REC as top two trading ideas for next week.

    Edited excerpts:

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    What happened in the markets? Do you think a 0.6% gain for Nifty augurs well going into the next week?

    It is a bit of mix and match because a lot of the stocks last week or this week gave a breakout. Axis and ICICI Bank managed to lead from the front. Bank Nifty till the mid of this week was leading the charts quite strongly. But in last two days, especially Thursday and Friday, there was some bit of loss of momentum. There were fresh stocks giving breakdowns and I am talking of largecap names like Reliance, IndusInd Bank, even TCS to a certain extent.

    So, till the middle of this week it looked like we could break out of that 11,000 mark. But the bias now should be to wait and watch. 10,700 is a strong support for the Nifty and 10,900 seems to be a very strong resistance. Till the time we do not breach either of these levels, Nifty could be range-bound.

    Basically no-man’s land now?

    Yes more of a range action, more stock specific to be precise.

    Your view on TCS and IndusInd Bank?

    TCS has been hovering around the long-term average. There was a phase of correction in October-November starting from Rs 2,200. The stock corrected till almost Rs 1,800 level and it continues to be there around the long-term averages. There are no signs of stock breaking key support levels. Indicators have also gone in a flattish kind of territory that indicates that the stock could remain in this prolonged consolidation phase for at least the next two-three weeks before you see maybe a volume action pick up or indicators showing some signs the stock was going to rise once again or break down.

    IndusInd Bank, on the other hand, has given a short-term chart breakdown. There was a triangular pattern breakdown for IndusInd Bank when it managed to break its key short-term support levels. I believe that could be a stock on the private sector bank side which could see some bit of more correction.

    What is your view on Axis Bank and also on Tata Motors which was up 5-6% last week?

    Axis Bank is staging a very strong breakout. Axis Bank adds to the private sector bank category now because it is trading with some chart patterns on the weekly, monthly timeframe which indicate that the stock is now trying to end a three-four-year consolidation. I am talking of large consolidation which is more visible on the monthly and quarterly charts for Axis Bank. So, it is a strong breakout which could probably bring Axis Bank into the league of maybe an ICICI Bank in terms of performance as well.

    Tata Motors on the other hand formed a bullish hammer pattern last month. The Rs 165-170 zone could act as a strong support and most of these indicators on monthly charts have entered into an extremely oversold territory.

    The last time we saw such a pattern happening, the stock had given a very strong bounce or a rally. Tata Motors could form a base around this Rs 165-170 level. It could be a good bet or a contra buy at these levels.

    What are your top trading ideas?

    For next week, I am suggesting two buys. One of them is Apollo Hospital. The stock is on the verge of a fresh breakout on the weekly charts. It is one of a lot of beta names and the stock has been moving up very steadily. It is trading above its key moving averages. Apollo Hospitals is a buy, with a target of Rs 1,350 and stop loss of Rs 1,265. And even REC Limited has shown a very strong recovery in the last three to four weeks from Rs 105-level to almost Rs 120 plus. It is now staging a fresh breakout on the weekly charts, bullish flag pattern as well as a double bottom kind of breakout.

    I believe REC could be bought into at current levels for a target of Rs 132, with a stop loss of Rs 120.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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