Firstly, if you look at the markets, it is 140 points up today, 24,700. We have also claimed the 2nd August highs that we had seen. So, how are you looking at the Nifty trajectory from here on?
Vinay Rajani: So, basically, for the last four trading sessions Nifty has been rising and the all-time high for the Nifty was placed at 25,078, which was registered on 1st August and from that level we witnessed a correction and that correction went up to 23,900 odd level. If we were to take the 61.8%, which is the Fibonacci retracement level, Nifty has managed to close, it has surpassed that level, 24,625 was the level precisely, that retracement level that has been taken out. We have also taken out the crucial gap resistance, which was there around 24,686. So, now it is trading above that. And as we have been discussing that the breadth of the market is quite strong, broader markets have been very supportive in yesterday’s session also. Even if Nifty and Bank Nifty were muted, but we witnessed a sharp bounce in the Small Cap Index and Small Cap Index has crossed all the resistances and headed for the new all-time highs, so that is a good sign. And now, today, we are witnessing some shortcomings in Bank Nifty. Bank Nifty is looking very strong. So, Fin Nifty, Bank Nifty, both these indices are taking lead today. So, I feel that Nifty is headed higher and headed for the target of 24,900 to 25,000 zone. And overall, I feel that Bank Nifty should do well from here. Bank Nifty is currently trading at 50,900 odd levels. I am at least expecting a 1,000-point rally from here.
The next resistance for the Bank Nifty is at 51,900 to 52,000. So, I feel that market should do well. Bank Nifty should lead from here and at least I am expecting 1000-point rally in next three to four sessions in the Bank Nifty.
Any specific stock that you are most bullish on when it comes to the financial space specifically and anything between PSU and private banks that you are looking at?
Vinay Rajani: I would recommend stocks which have not performed till now, but they can be a candidate of short covering. And in today’s session, there has been some momentum building up, after a long time we witnessed some good momentum on the bullish side and both stocks are largecap stocks. So, first is the Bajaj Finance. So, Bajaj Finance looks very strong to me. There has been a good recovery from the lower level and oscillator indicators and moving average setup is improving for last two trading sessions. So, I would like to go long in Bajaj Finance around 6700, stop loss I would recommend is at around 6500 and on the upside I am expecting a target of 7000. The second stock I would pick is the Kotak Bank. So, Kotak Bank has also given a breakout and looks very strong in today’s session. So, Kotak Bank can be traded long around 1805. I am recommending a stop loss at 1775 and on the higher level I am expecting 1880 to be the target for the stock. So, the time frame for both these recommendations would be three to four sessions.