trading bets: Kunal Bothra’s 3 stock picks for this week

Impartial market skilled says developments over the previous few weeks in addition to over the previous few quarters have been phenomenal for all the IT bundle Kunal Bothra. Excerpt from the interview:


Contemplating we have now seen a convincing transfer past 15900, clearly a troublesome ceiling for the index, what’s going to occur to the market subsequent as we have now failed to carry the file excessive that final week?
I feel there are a variety of components that we have to think about and be careful for like whether or not the index will explode to interrupt by means of 16000. I feel we would like the indicator to have the energy to remain round 16000 ranges.

If we glance contained in the market, we noticed a blended sector method final week. We primarily see IT shares carry out exceptionally nicely, Additionally, Bank Nifty managed to get in and present some help and resilience within the final week. Nonetheless, there are nonetheless a variety of banking shares similar to giant caps which have but to open, so we have to see stronger motion in these areas. Steel shares additionally outperformed.

However there are some underperforming sectors and that is one of many causes the index is generally in consolidation mode. The worldwide texture can also be one thing to contemplate as a result of once we scan by means of the worldwide charts, not all world markets hit all-time highs.

So I feel it is attainable the index may stay on this very sluggish gradual uptrend and the motion may very well be very stock-specific like what we noticed on Friday the place we have now a detailed. mixture of shares from actual property to prescription drugs, brokerage shares and AMC shares, and so on. are doing nicely.

So we are going to possible be in a part for some time the place there will probably be extra stock-specific motion than a powerful business development being carried out.

What are your ideas on the IT metric that has gone by means of a two-week shedding streak and it is clearly had a terrific run with Wipro being one of many higher performers?
I feel not solely Wipro however the final week noticed a variety of mid-range IT names doing very nicely. We noticed a 15-20% enhance on L&T Infotech and earlier than that we had Mindtree, Mphasis which carried out exceptionally nicely. Intellectual design is likely one of the different mid-range IT names that additionally carry out extraordinarily nicely. So we have got a bunch of enormous and midsize codes that work fairly nicely.

I feel that is the time when the market will regain confidence as we have now very sturdy IT shares and there’s a lot of demand chasing these shares even at present ranges. Right here we aren’t speaking about an uptrend the place the inventory has given 15%, 20%, 30% returns in a brief time frame but when we take a look at it during the last 14-15 months , we’re speaking about giant cap shares that give greater than 3x returns.

Due to this fact, we see that the potential for revenue is big and it’s fairly outstanding that these shares are nonetheless hunted by market members every time there may be excellent news.

However once we take a look at the chart, we really feel extra snug initiating trades when there is a perfect mixture of threat reward. So shopping for into shares which have surged could name for some kind of short-term commerce that can final for a couple of buying and selling periods.

The chance reward is just not favorable to try to begin contemporary so both these shares will expertise a slight correction or if there’s a value correction I feel the danger reward will change into enticing. So it in all probability is sensible to strive moving into shares at these ranges. However sure, the developments to this point over the previous few weeks in addition to over the previous few quarters have been phenomenal for the general IT bundle.

What’s your bet transaction for subsequent week?

I’m anticipating a selected inventory efficiency so I’ve three purchase orders. The primary is to purchase on Havells. I’ve been bullish on the inventory since a couple of weeks in the past and have indicated a variety of purchase orders earlier than that. Present inventory lastly broke out on Friday and I count on a stronger continuation transfer. Merchants can think about a contemporary purchase at present ranges with a goal of Rs 1140 and a cease loss at Rs 1030.

The second could be to purchase Hindalco as metallic shares have carried out exceptionally nicely and they’re nonetheless sturdy. Many of those metallic shares are at new near-term highs, and a few of them are at new life highs. So I’d wager on Hindalco to any extent further and count on at the very least Rs 25 to Rs 30 on the upside with Rs 430 as a possible goal and a cease loss that may be saved at Rs 292.

One of many weak factors that attempted to work once more was

and I feel it is one of many shares to be careful for. If the inventory crosses the Rs 550 mark which is an enormous hurdle for Bharti Airtel then I’m anticipating a really sturdy brief sale. So I feel above Rs 550 is the place the place each dealer can look could be rising place and measurement within the inventory. Merchants can think about shopping for with a short-term goal of Rs 575 and cease loss at Rs 525.