Manav Chopra’s 3 trading picks for Monday morning
Manav Chopra, Head of Research, Indiabulls Venture, has a buy on Orient Bank, Zee Entertainment and Tata Power for monday morning. Going forward the momentum looks very strong for the Nifty, Chopra tells ET Now.
10,700 is becoming a bit of a hurdle for the index. Can banks push the index higher and manage a breakout above the 10,700 mark come next week?
Yes absolutely. If you look at the broader index, the banking index has been forming a consecutive series of higher tops and bottoms. The kind of weekly support that the bank index has formed and the kind of reversal that we have seen in the PSU banking space and also the private banks clearly indicate that going forward the banking index is likely to see a sharp upside.
Once the bank index manages to close above 26,400, we will not be surprised if there is another 800 points rally. Most importantly, Nifty has managed to see a weekly close above 10,600. All said and done, going forward the momentum looks very strong for the Nifty and it has confirmed a very strong support at 10,550 on the lower side.
Eventually, Nifty would be seeing targets of 11,000 in next couple of weeks. Overall, the entire scenario for the Nifty and Bank Nifty one should definitely maintain a buy on dips approach.
Would we see a further breakdown in Yes Bank going forward as well? Could it retest the previous lows of 170-180?
It seems quite likely. The important support on a weekly, monthly basis would be at Rs 165-170 on the lower side. The short-term trend has turned weak and after that series of sharp declines, this stock will look to consolidate. After a sharp price correction, the next phase in Yes Bank could be a time correction.
Only for trading, one can look to re-enter Yes Bank at the lower levels with support at Rs 170 as from those levels we can still anticipate another bounce back. On the upside, there will be a strong resistance at Rs 198- 200, As long as we do not see a breakout happening above that, Yes Bank would consolidate near Rs 170 on the lower side to Rs 195 on the upside.
Do you think a major part of the rally is already behind us in Jet after this 44-45% move in the last four days?
Since the prices have already breached its important weekly, monthly hurdles and most importantly the recent rally was accompanied by very good volumes, the momentum looks very strong. Quite likely the prices are likely to see some sort of a rally and the follow-on move could be extended towards 400 level as well.
Purely on the short-term momentum play, it is something that one can look at. Long-term charts still look quite dicey but it is only going to be a momentum short-term play. One should keep a stop loss of Rs 310 on the lower side and can look to initiate long positions.
What is your on list for Monday morning?
I have three calls. My first buy call is Orient Bank. Most of the PSU banks have witnessed a good momentum shift and Orient Bank has also seen a good weekly breakout with above average volumes. The oscillators have also entered into a buy mode and there has been a good formation which indicates that a bottom is in place. We recommend a buy into this with a stop of 89 for an upside target of 100.
My second call would be a buy on Zee Entertainment. Basically the stock has witnessed a series of declines from its recent peak and has declined by over 25% from its all-time highs on the weekly charts with presence of some momentum indicators indicating that the short-term bottom is in place.
I sense there is a very good risk reward ratio at the current levels and the prices could see a good pullback rally from the current levels. It has an important support at Rs 435 on the lower side. Rs 432 can be the stop loss for an upside target of Rs 480.
My last pick is on Tata Power. Basically the stock after a good weekly breakout has been consolidating its gains and has been forming a series of higher tops and bottoms. The prices have also formed a very good base around the levels of Rs 75 which also coincides with important support and long-term averages. We recommend a buy with the stop loss of Rs 74 for an upside target of Rs 85.