While Yes Bank has a lot of tailwinds, Jet Airways will take its time to move out of turbulence, says Kunal Bothra, independent market analyst. He spoke to ETNow.
Edited excerpts:
ETNow: What is your view on the technical side, both for the Nifty and the Bank Nifty?
Kunal Bothra: The view on the Bank Nifty and the Nifty still remains positive. It is just about some additional bit of momentum. The sectoral churn has been extremely positive. So, the takeaway for August and the last week would not just be the price performance, but the way a lot of sectors and stocks came back and the comeback of largecaps like Reliance even as there has been a bit of a profit booking for Reliance and other large cap names.
I largely believe that the trend for these stocks on a positional basis is very positive. And for the Bank Nifty, especially, 28,300 is more of a triple top resistance. I strongly believe that with the mixture of the Bank Nifty improving, stocks like ICICI Bank, Axis Bank and even PSU banks are now showing some sturdy chart patterns. The Bank Nifty should also break out. I maintain the positive stance on the Nifty, especially for the Bank Nifty. A case could be built that a breakout above 28,300 would happen in the coming week.
ETNow: What is your view on Yes Bank and Jet Airways?
Kunal Bothra: Yes Bank, I believe, is now coming into a good buying zone. The breakout for Yes Bank at the start of July was led by very strong volumes. When you see the stock falling, it has come back and retraced most of that with a rise and coming back to the support zones of 200-day moving average as well. A lot of supports are now in place for Yes Bank and I strongly believe that with the market mood still extremely positive, Yes Bank could be bought into, except for the volatility part. On technical terms, it is a very good buy level or an entry level around the 340 mark.
Jet Airways, on the other hand, is taking some bit of more time. The volume patterns have improved significantly. The fall has been arrested for Jet Airways, but that does not indicate that the rise would happen immediately. Generally, when you see such prolonged periods of sharp corrections, you see more of a pause happening and that is what could happen for Jet Airways. It may remain range bound for the next couple of weeks and months before you see some substantial upside coming.
ET Now: Any picks for our viewers?
Kunal Bothra: Well, three of them. First is Bank of Baroda and most of the PSU banking stocks are looking very attractive on their short term charts. Bank of Baroda particularly is forming a bullish flag pattern on the daily charts and the breakout is about to happen around that 154 mark. It tried to test that level on Friday, but I believe if the stock opens up higher above this level, it should see some additional bit of momentum. So, that's a buy, with targets close to 160-162 levels and stop loss at 145.
Second is Ambuja Cement. That stock also managed to cross comfortably above the 200-day moving averages. Such kind of steady rise on the cement stocks overall is extremely bullish in terms of chart patterns and Ambuja Cement could rise from current levels. The target is 255 and stop loss at 235.
And the third stock is a buy on Sterlite Tech. Again a midcap stock, on the daily charts, there is this golden crossover where the 50-DMA has crossed 200-day moving averages. Volume wise, price pattern wise, that's extremely bullish. That stock should also break out on the upside. That is a buy, with 400 as the target and stop loss at 340.
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