00:00 Hello and welcome to BQ Prime. A very good afternoon to all the viewers. I am Sunika
00:05 Dhadia. Joining us on the show is Kunal Shah to discuss what's in store from a technical
00:11 and derivative perspective. Kunal, good afternoon and welcome to the show.
00:15 Good afternoon, Meera.
00:18 Kunal, sideways momentum is what has continued. We have been facing crucial resistance at
00:25 19350. What's the sense that you pick up and what are the levels you are watching out for?
00:30 I think absolutely, as you pointed out, the momentum is quite sideways. We are not seeing
00:36 any good kind of strong buying from the lower levels or selling pressure from the higher
00:41 levels. So you can say market is stuck in a range. There is a fight between the bulls
00:45 and the bears currently. But within this range, my stance still remains bullish as long as
00:51 we sustain above 19250. So 19250 is our make or break level for the index. You can say
00:57 if we are sustaining above these levels, we can expect a gradual recovery towards 19,400
01:02 for 50 on the upside. The immediate hurdle on the upside is at 19,380. Once we surpass
01:08 that level, then we will head towards 19,450-500 levels, which is the next resistance zone
01:13 for the Nifty Index.
01:14 And simultaneously, how are you looking at Bank Nifty because it has broken out of a
01:22 range but still that consolidation does continue.
01:26 I think definitely for Bank Nifty, it was the index which was looking much more stronger
01:31 compared to the Nifty Index. We took a support at that 44,000 mark, which is now considered
01:37 to be a strong support. In fact, even if you look at the open interest data, 44,000 put
01:42 writers have the highest open interest built up on the monthly expiry. So clearly, there
01:46 is a strong base which is there at the lower levels. On the higher levels, we are seeing
01:50 resistance at 45,000 mark. So probably this is a thousand point range in which Bank Nifty
01:55 is stuck into. But within this range, again, my view remains bullish. Bank Nifty must go
02:00 stronger compared to the Nifty Index. So one can even initiate long positions at the current
02:04 levels, keep a stop loss of 44,200. We can expect a recovery towards 44,800-45,000 levels
02:11 on the upside.
02:12 Right. From an individual stock perspective, you are seeing some positive momentum with
02:19 regards to SRF as well as Deepak Nitrite. What is the sense that you pick up?
02:25 See, I think overall what we can see is, if you look at today's trading session especially,
02:30 chemical stocks are looking extremely good. The entire sector has made a very strong bottom
02:35 as well. So I think the worst for the chemical sector is over. You can see the entire sector
02:39 will move together going forward and everybody will catch up with each other.
02:43 Talking on the stock perspective, yes, Deepak Nitrite looks quite attractive on the chart
02:49 perspective as well. A fresh breakout has already come into the stock on a technical
02:52 perspective. Even if I look at the long-term charts, there has been a rounding bottom formation
02:57 which is clearly visible. So I expect Deepak Nitrite to again go higher from the current
03:01 levels as well. 2,300-2,500 is the positional target what I look at. Currently, the stock
03:09 is trading around 2173. So already we have seen a 6%, 6.5% rise in today's trading session.
03:15 So my ideal range of buy would be 2120-2150. If you get in this range, initiate long positions,
03:21 keep a stop-loss of 20,050. I expect target of first 2,300 and second target of 2,500
03:27 on the upside.
03:28 Right. Moving on, if you see in terms of your other names, you have IGL also which is moving
03:36 pretty strong. What would be the strategies that you would suggest?
03:41 See, for IGL, I think all the gas stocks are generally based on news perspective. So there's
03:46 a lot of volatility there. We have seen a good up move in IGL in today's trading session.
03:52 Still more up move is left. We can expect IGL to go towards 475-480 levels on the upside.
03:58 So my view is bullish. One can initiate long positions.
04:02 Right. On short side, if you see names like Pyramil Enterprises, Lupin, CoForge, these
04:12 are names which are seeing a short build up. What would you recommend?
04:15 I think overall if we look at Pyramil, the stock has seen some outperformance. But specifically
04:22 in today's trading session, we are seeing some short build up position. Now on the higher
04:26 level, the resistance is clearly visible at 1100. So 1100 is a strong resistance. One
04:31 can initiate short positions, keep a stop loss of 1100. We can expect a gradual downside
04:36 fall towards 1075 levels.
04:39 Okay.
04:40 Do you think your financial services is locked in upper circuit as we speak? What are charts
04:49 indicating? I know it's too early, but we've seen the last couple of days of trading basis
04:53 that what would you recommend?
04:54 I think overall, I think it's a very good buy what you're getting at the current levels.
04:59 Obviously, the technical chart data is very less. So we won't have a clear cut view on
05:03 this. But yes, talking from the last two to three days trading action, the other is seeing
05:16 buying from the lower levels. So one should definitely initiate long positions even at
05:19 the current levels.
05:20 Right. Apart from these, Kunal, any other names that you would recommend which would
05:28 be good recommendations?
05:29 I think stocks particularly are looking good from my end is first is the auto space. Auto
05:40 space still looks very attractive to me. And over there my top pick would be M&M. One can
05:46 initiate long positions, keep a stop loss of 1530 on the downside. You can expect targets
05:52 of 1600 to 1620 on the upside. So M&M is my first pick on the auto space, which is looking
05:57 very good. Secondly, I'm coming back to chemicals as we mentioned in the show as well. Chemical
06:03 as a sector has bottomed out. And I think the sector overall will do quite very well
06:08 for the next three to four months as well. One stock which I would like to highlight
06:12 over here from the chemical space, which could see further upside going forward as well.
06:17 The name of the stock is Lakshmi Organics or you can say Lakshmi Chemicals. On the weekly
06:22 chart, the stock has given a strong breakout with volumes in the last two trading sessions.
06:26 The stock has moved from 260 to almost 300 levels on the upside. Again, this has been
06:30 a sharp rally. So currently these levels are not ideal to initiate long positions. But
06:34 if you get any dip into the stock, you can utilize that to buy. The strong base of the
06:39 stock is at 275 levels. I expect the stock to move higher towards the levels of 360 to
06:44 380 levels on the higher end. So Lakshmi Organics is one stock which you should keep on your
06:49 radar. Right. So these are few names one should be watching out for as well. Thank you Kunal
06:54 so much for joining us on the show and sharing those views. So interesting names that are
06:59 on the radar. It's a stock specific action, no major moves that we are seeing in the market.
07:04 But interesting to see how Geo Financial Services is locked in upper circuit. And if you see
07:09 from a market perspective as well, we did dip and did recover as well. We are above
07:14 the 19.350, it seems like in terms of closing. And you have Bank 50 which has remained pretty
07:20 much flat. But the advance to client ratio is pretty much in favor of the advances. Geo
07:24 Financial Services, UPL, Hindalco, Adani, Ford, Hiromoto, these are a few of the top
07:29 cateners. Whereas on the losing end, you have names like Bharti HL, HUL, Access Bank, Reliance
07:34 Industries where investors are not really enthused with the AGM announcements as well
07:39 as Dr. Reddy's which is trading under pressure. That's all that we have in this session. Thanks
07:44 for watching and lots lined up on BQ Prime. Please stay tuned.
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