Because this week we have seen the Nifty breach that 19,600 mark, do you also believe that there is more room for further fall and how do you see the trend shaping up because we are just sitting at the start of the August series?
See, earlier if you would have seen that we were stuck in a range of 19,300 to 19,500 for nearly seven trading sessions and from there we had a breakout and then we made a high of somewhere around 19,991 level.Now we are consolidating the previous gains. At present, yes, Nifty has got good support at somewhere around say 19,600, 19,550 levels. Now the level of 19,500 which was earlier acting as a resistance is now going to act as a support.
It is likely to act as a support. So, going forward, 19,500 level is a make or break level. If Nifty holds that level again, then we are likely to head higher.
But yes, I agree that we are likely to see a time-wise correction or a price or a minor corrective move on the lower side but the trend remains up and at lower levels we are likely to find some buying emerging. So, one should trade with positive bias only and stock specific activity mainly in midcap and small cap is likely to continue.
Nifty Pharma is seen to be hitting that 15,000 mark for the fifth straight week where we have seen this index moving upwards. So, what are the next level that you are watching out for as well as any stock pick from this particular space that is on your radar?
At present if you see the pharma sector, for the last nearly seven weeks it is just going on the higher side and even yesterday we had a gap up opening in the pharma sector and still the gap is still open, that shows that there is a lot of strength in pharma stock.
Now, there are two stocks which come to mind — one is Alkem and Ajanta Pharma. One can buy both these stocks for a gain of say 10% to 15% from current level. So, I am liking both Alkem and Ajanta Pharma.
We did touch upon a lot of sectors and also got your picks from the pharma space but other than that which are some of the stocks that you will be keeping on radar and on which our viewers can also trade on?
We have recommended two stocks for our clients — one is Tata Chemical, it was trading at 1041, now currently the close is 1051, one can keep a stop loss of 1010 and a price target of 1100 to 1130 levels could be possible.
The second stock is LIC Housing Finance, we had recommended at 397 but now it is trading at 430, even at this price also one can buy the stock with a stop loss of 380, on the higher side we expect a move towards say 450 to 475 in a couple of weeks.