Tell us how are you approaching, what are your stock ideas and also before that what is data telling you on Nifty, Bank Nifty? Is it very bearish? Is it getting cautious? What exactly are you reading there?
If we have to look at a broader structure for Nifty, I believe that 19,800 is a key level which Nifty must cross to give unrelenting confidence to bulls to aim for that 20,500 plus trajectory. Until then Nifty remains sideways as long as it is trading above 19,300 because 19,300 is that key level where the correction took place and there was a follow-up subsequent pullback from those levels.
Alternatively a slip below 19,300 will definitely bring a lot of panic and it will bring Nifty in a very delicate situation where it can test 19,100 to 19,000 odd levels as well and the probability of this will definitely grow higher if Bank Nifty does not come and support or participate with the markets.
There is a constant supply zone in Bank Nifty around 45,000 to 45,200 levels and call writers are quite reluctant in exiting their positions at 45,000 call.
Bank Nifty must either cross 45,200 spot to show strength and simultaneously with IT it will give some support to Nifty but until this happens I would see that Nifty and Bank Nifty both may remain sideways to seeing repeated selling pressure from higher resistances.
What are your picks as of now then? What are you looking at in the market?
Stock specific would be, of course, a better play right now in this market. The first pick would be to buy Ashok Leyland. It has held very strongly.When the markets were correcting it gave a good breakout. It was still holding above its breakout level.
So, with a stop loss of 178 I believe Ashok Leyland can actually test 200 levels so that is the first pick.
The second pick would be from Jindal Steel. So, Jindal Steel I believe has shown good rollovers. However, when market corrected, it also fell down to 640 odd levels. It has rebounded well enough from there. It is currently around 670 odd levels. So, I believe that with 640 as a support Jindal Steel can actually test 720 to 735. So, both of these stock picks would be on the buy side.
Some of the midcap financiers and lenders are doing very well today. MAS Financial, Five Star Finance. Can you check out the charts, which ones are looking good?
So, if we look at both these stocks, I believe it has shown some good trend today. Five Star especially if we would see, it is also looking out well perhaps heading towards a longer trajectory. But out of both these stocks I believe MAS Financial is looking slightly better.
It has the trend to go even up to 860 odd levels. It is holding a good support of 800 on a very immediate position. So, out of the two picks I believe MAS Financial is looking like a stronger pick to head for a stronger momentum from current levels.
Also, just in terms of some other names, especially in the pharma side, yes, Gland Pharma, they had reported their number that commentary that has come in from the management as well. But, we have seen that buzz continuing in the pharma space as of now. Is there anything that you still find attractive that one should look at as of now?
Pharma has shown good rollovers. I believe any pick from pharma sector is going well. My first pick would be to understand Lupin. I think Lupin is continuing in that uptrend trajectory still and Lupin is showing that constant up move.
It is not showing any signs of exhaustion. I believe Lupin still as long as it is holding above 1080, let us say for the day and it can move forward to 1120-1140 odd levels also.
I think Lupin would be the better pick out of the two. After Lupin, you can see Biocon is also doing well. It has shown good long positions and Biocon can also see you a higher stock price, higher pick of around 290 odd levels. So, I think both these stocks in pharma industry are holding quite well.
Start buying some of the chemical names now, like SRF or you would stay away even now?
Chemicals, to some extent we have seen that there is some bottoming out happening not in all these stocks. Out of all the picks, SRF is definitely a stock that is holding better. So SRF, I believe, is showing you a strong support. It is holding 2260 as a support, although it is facing that resistance of 2290 to 3000 because that is where some call writers are still holding their positions. I believe once it crossed this level 2290 above at least you would see that SRF can actually rally towards 2300-2340 as well.
In fact, some of the energy stocks have also perked up very well today. JSW Energy, put up Petronet LNG, both these energy stocks are doing well. Would you bet on any of them?
So, in energy space, I would prefer JSW Energy which is looking far better than in comparison to all its peers. It is already up by 5% today. I think it has given a good breakout above 300 odd levels. So, I believe as long as it is holding 298, it still has a good momentum to catch up to 312 to 316. So, out of all the picks, JSW Energy is definitely looking as a good strong pick.