What has been your assessment of how the market has shaped up?
Overall it was a week where we saw a bit of consolidation and now we are forming a new range. For the last three, four sessions we have made bottoms around the 17150 to 17200 mark and recovered from those lows every time while 17500 is acting as a resistance.
So this is a range which should continue for at least a couple of more sessions or the next week as well. Only when we get beyond this range can we get another 300 point up move.
Overall, structurally the trend remains positive but there is still a lot of catch up left in small caps. So overall selective move and sectoral rotation should continue and hence we should keep watching out for stock specific and sector specific trends.
IT index is one of the top sectoral gainers this week and for the third straight week we have seen traction building up. and have been some of the top gainers within the IT index. Which stocks would you be picking within this space?
When looking at the IT sector, one needs to be careful because this is more like a short term recovery bounce and not a trend. So I would go with large cap names. First is:
because it has corrected the most. We could see some bit of a recovery towards 470 to 490 levels. One can keep a stop loss for Wipro below Rs 425.
Second would be:
which has again corrected a lot. It has corrected all the way from 1700-1800 towards 1000-1050 levels and it could go back to 1200. So these are the two names I would go with.
What are your top bets?
I am looking at a couple of stocks. One of them is a safe bet which is Bharti Airtel. The stock is trying to make that breakout above the 700 mark. The stop loss for can be kept at Rs 690 with a short term target price of Rs 750.
Second is a buy on
. For the short term, the target price can be kept at Rs 270 and for a longer term the target price can be kept around 350 to 400. The stock has done nothing for the last 10-12 years and now it is finally on the verge of a breakout.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)