stocks: 2 stocks for trading on Monday: Kunal Bothra

Talking to ET Now, Kunal Bothra, Independent Market Analyst, says bullish on Tech Mahindra and Arvind Mills in he short-term.

Edited excerpts:

Nifty has been stuck in a range. Do you think we will be able to break free come next week?

Absolutely. I strongly believe that in the first half of next week, we should be breaking out of this range. The range is getting narrower by the day. The start of the week before or the week before that, the range for the Nifty was 250 points and now the range is almost 60-70 points on the index 9900-9950 is more or less acting as range for the index.

The good part which happened on Friday other than the breadth of the market which was a bit narrow, the resurgence of largecap names was something very interesting because you need for the index to break out of this range you need support from a lot of large caps, HDFC Bank, L&T, Maruti.

These three stocks having taken the baton higher is a very positive sign and I believe there is a stronger chance of assuming there is no geopolitical tension. The break out should happen on the upside. I am extremely optimistic on the index as well and would watch out for breakout on the upside for the Nifty as well.

Any stock ideas that you may have in mind for Monday morning?

Yes, there are a couple of them which I believe should be looked into in terms of trading. First is Tech Mahindra. I believe on short-term charts, the IT stock is now looking quite robust. It has been atypical of its behaviour before that as well. Earlier, the stock used to see a sell on rise kind of phenomenon, now it is seeing a buy on dips.

I would sense that the structure for Tech Mahindra has changed, would look out for a buy at current levels, targets of Rs 445, stop loss at Rs 422.

The second is a buy on Arvind Mills. The last week had been very good for the stock. On the back of good volumes, we have seen very good price appreciation. I believe that this stock should continue to rise further from current levels as well. Targets of Rs 425 on Arvind, stop loss to be kept at Rs 385.

Leave a Reply

Your email address will not be published. Required fields are marked *


13 + one =