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Friday’s move compliments data points on the indices. We also saw a blend of short covering as well as long built up so there were so many large cap names which looked more formidable likes of , Dr Reddy making a comeback, the pharma stocks overall making a comeback and such other sector which did extremely well, said
Kunal Bothra of
kunalbothra.co.in
in an interview with ETNow. Excerpts:

What are you looking at in terms of the charts from the Nifty going forward? Also how can we look at the next coming week as well?

After Friday’s move, we can say that the bulls can finally heave a sigh of relief that there is some rally which has shaped up for the indices. The start of the week was extremely torrid for the markets but the end was something which I believe everyone would probably want to take note of because of the way in which our markets shaped up devoid of what is happening across the globe.



So in the last one, one and a half odd month we have been so much dependent on what is happening across the globe specifically the US indices. But the last two days our market performance has been completely different and divergent on a positive side, of course, with respect to what is happening on the US indices so that was one big positive for our markets possibly we are breaking the chain of just about trying to follow what is happening across the globe and we could probably be now leading a direction on the upside.

Now there are so many data points to discuss about but I would probably keep it restricted to just a very important ones like on Thursday post the weekly expiry we had seen a massive amount of call buying happening at the 17000 strike. I think Friday’s move sort of compliments that kind of data point on the indices. We also saw a blend of short covering as well as long built up so there were so many large cap names which looked more formidable likes of Reliance, Dr Reddy making a comeback, the pharma stocks overall making a comeback and such other sector which did extremely well.

So when are you into such kind of a scenario where there is a long built up as well as short covering going hand in hand the market breadth looking quite strong and the options data also trying to compliment it is a perfect and a classic setup for a stronger recovery on the indices. So I would expect that if there is no major setback across the globe that next week we should be trading much higher than where we left off on Friday and I possibly believe that we should make a dash back to at least 16,600 if not more on the Nifty 50.

What are your top picks that you are looking at?

So there are two buy calls which I would want to suggest at the current juncture; the first one is a buy on

, very interesting chart, the stock has been one of the more formidable midcap or large chemical names looks attractive. The stock is confirming a breakout of a cup and handle kind of a pattern, Rs 1040 as that target, stop loss Rs 960 for Tata Chemicals. And from the fertiliser pack a non F&O stock RCF, I have been discussing this stock since last one week that how the stock has shown brilliant kind of chart patterns at I think Rs 99 or 100 odd levels RCF also looks very attractive on the charts and I would expect a much stronger follow through price action for the stock in the next few weeks to come by. So a positional buy on RCF, Rs 120 as the target, stop loss at Rs 92.

Thanks

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