How do you see recovery in the market? On Friday, we saw a good recovery from its lowest point and this trend continues on Monday as well. Where are we headed from here on?
Rajesh Bhosale: If we see the chart structure from May itself, the market has been trading in a range where 24,450, 24,500 has been acting as a support. On Friday, we tested the lower range and from there, we are seeing a strong positive traction. In fact, despite global headwinds we are doing pretty well. So, the bias remains positive.
The approach would be to consider buying on dips and to lighten up position at higher levels. 25,000 is the one important key huddle to watch out for. Once that is broken out, possibly after that, resumption of up move can be expected. In the broader markets, advances are a little fewer than the declines. The focus would be on key heavyweights that are pushing the markets higher.
Like you mentioned, there are global headwinds, but despite that, we are holding pretty steady. In fact, one pocket that has been outperforming is Nifty IT. It is holding the fort well. In fact, once we saw that breakout coming in, there has been no stopping in Nifty IT, especially the midcap IT space and one name that really stands out is Coforge. Talk to us about Nifty IT. Will it head higher?
Rajesh Bhosale: Nifty IT was the outperformer of last week. It was up by more than 3%. Recently it was not participating in this broader market uptrend, but the momentum has shifted on the positive side since last week. On the weekly chart, we are seeing some structural bullish formations. We expect this space to outperform in the near term. The chart of Coforge has been one of the outperformers from this space and we expect this positive momentum to continue.
The stock is continuously moving in a higher top, higher bottom formation where every dip towards the 20-day exponential is getting bought into. So, Rs 1750 is where we are seeing a strong support and we expect this positive momentum to continue towards Rs 1,950 and then towards the Rs 2,000 levels.
Give us your stock picks as well. Any stock that is standing out for you right now?
Rajesh Bhosale: Since we are talking about IT space, one of the counters that I am liking is heavyweight TCS. TCS is showing strength in today’s session and after a very long time, the stock is breaking above the 50-day exponential moving average. Also, on the futures front, we are seeing long formation and a range breakout is also witnessed on the daily chart. TCS currently is quoting somewhere around Rs 3,500 and can be bought with a stop loss of Rs 3,420 and the target that we are expecting is Rs 3,660.
My second buy call is on another heavyweight, ONGC. The ONGC chart shows that it has been trading in a range, but we are now seeing a range breakout above the 250 levels and after a very long time, the stock is holding above its 200 DMA. We expect this positive momentum to continue. ONGC can be bought with a stop loss of Rs 251.70 and we expect the target of Rs 265 in the near term.
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