“It is the third consecutive week where has seen higher high formation. We are expecting Canara Bank to move further higher towards Rs 315- 320; one can keep a stop loss of Rs 292,” said Rajesh Palviya of Axis Securities in an interview with ET NOW. Edited excerpts:
We are not very far from all-time high levels. In a couple of weeks do you expect that number to be clocked in?
Our market was very stable in terms of price action despite a major event which passed this week. Overall, Nifty is holding the 18,000 level comfortably; a lot of put writing activity was seen at 17,900-18,000 and even 18,100 strike which clearly shows that confidence is there for holding this 18,000 level. Overall, if we look at the setup for the market, broad-based buying action was witnessed in smallcaps and midcaps which is again positive for the market because despite of a major event, the buying action continued in this space. The market is giving thumbs up to all positive numbers which are displayed by the companies in their quarterly earnings. It clearly shows that the market texture is positive and one should remain on the buying side. Whenever volatility is giving you the opportunity to buy on declines, you should be ready to buy the dips.
18000 is our stop loss for Nifty. We are expecting that Nifty can continue further higher momentum in the coming week towards 18,250, even 18,400 level. Bank Nifty is also very stable, 41,200 level was saved despite of volatile sessions in the last couple of trading sessions. Once it manages to cross above the 41,650-41,700 zone, then possibly this rally can continue towards 42,500.
What are your top bets for the coming week?
The first stock from the banking space is a PSU bet — Canara Bank. It is the third consecutive week where the stock has seen higher high formation. We are expecting Canara Bank to move further higher towards Rs 315- 320; one can keep a stop loss of Rs 292. Another stock is from the cement space and that is Ambuja Cement. After a consolidation, again the stock is showing a good price action. Ambuja Cement can do well in the coming week. Upward side, we are expecting a target of Rs 580-590 with a stop loss of around Rs 545. The third stock is from the metal space. We have seen a strong buying action in all the metal space on Friday. From that space, we like Tata Steel. If you look at the weekly setup, a falling trend line breakout is already done on the weekly chart which is showing that the trend has reversed. We are expecting to move further higher towards Rs 115 in the coming days. So, one can buy Tata Steel with a stop loss of Rs 101.
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