Stocks To Watch | Markets Trade Higher; PSU Banks & Media Gain
#StocksToWatch | #MotilalOswal's Chandan Taparia talks about stocks to keep an eye out for. #BQLive #BQStocks
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00:00 Hello and welcome to BQ Prime.
00:01 A very good afternoon to all the viewers.
00:03 I am Heeral Dhadia.
00:04 Clearly, a good recovery that we have seen in trade today after the slump in yesterday's
00:08 session as well, specifically with regards to broader markets.
00:12 But what is in store from here on is going to be interesting because clearly it was the
00:17 broader in-market indices that cracked in trade.
00:20 Clearly the call and put writers are tussling at those 20,000 strike levels as well.
00:25 But let's discuss more with Chandan Taparia in terms of what we should be watching out
00:30 for from here on.
00:31 Chandan, overall, there has been a tussle between call and put writers at that 20,000
00:37 open interest level.
00:38 What's the sense that you pick up?
00:40 Good afternoon.
00:42 Thanks for having me.
00:45 So first, if I look at the Nifty, we are well above 20,000 marks.
00:50 It took almost a 52 trading session for the journey of 19,000 to 20,000.
00:57 We took almost 7-8 trading sessions from 19,000 to 20,100.
01:04 So the trend of the market is shifting upwards.
01:06 The pace of the market is shifting higher.
01:09 Two weeks back, we have negated lower lows and lower lows in the weekly timeframe.
01:13 In fact, we are witnessing some put writing at 20,000.
01:16 However, call writing is also there at 20,000 because of that they are putting some pressure
01:20 at higher levels.
01:22 But looking at the India Weeks Rising Put Call Ratio, market structure, the bias could
01:27 remain positive.
01:28 And we believe that till Nifty holds above 19,880 marks, this momentum can extend to
01:34 20,250 to 20,500.
01:39 So we suggest to continue with long position with support of 19,800-850 zone and continue
01:45 to ride this rally to us further 200 to 400 points upside to 20,250 to 20,500 marks.
01:53 Right.
01:54 So that's with regards to the overall Nifty setup.
02:01 How are you seeing Bank Nifty specifically from a PSU banking perspective?
02:05 Yeah, so first, if I talk about the Bank Nifty index that also recovered well, actually the
02:12 leadership in Bank Nifty only helped Nifty to conquer the new high at 20k marks.
02:18 Bank Nifty is just a few points, a few hundred points away from its previous lifetime high.
02:22 Lifetime high is 46,369 and we are near to 45,900.
02:28 So further 400 points plus run up can take it to the new highs.
02:32 So trade setup is positive.
02:33 45,500 is the support and we are expecting it to go to 46,500 level.
02:38 Now, coming to your question on PSU banks, we have positive on most of the PSU and private
02:44 banks.
02:45 So first, if I talk about the SBI, this stock has bottomed out near to 565 level.
02:51 Holding well, boys.
02:53 Keep moving away, the supports are shifting higher.
02:55 So now one can continue with low position in the State Bank of India.
02:59 Support is near to 580.
03:01 It can head to a 625 level.
03:04 Positive on the Punjab National Bank.
03:05 Breakout is clearly seen here.
03:08 Momentum can accelerate to 77.
03:11 So SBI, PNB, Kendra Bank, all these stocks are in momentum and I believe further 5 to
03:17 10% rally in all these counters will continue in the market.
03:21 Right.
03:22 Now, in terms of individual stock specific action overall, Chandan, if you see in terms
03:28 of today's day of trade itself, let's pick up few of the names, ABB, REC.
03:34 Both of these counters are seeing some bit of momentum on a bearish side.
03:39 What should the strategy be according to you?
03:41 Yeah, so first let me talk about REC Limited.
03:45 Remember, we already seen some profit booking in Coal India and again, they recovered well
03:51 today.
03:52 And I believe the same sort of setup will be there in these names as well.
03:55 So talking about REC, it witnessed profit booking decline.
03:58 3 days back it made high near to 285, now it's near to 244.
04:02 I believe near to 230 or 227, it may find support to again commence the next leg of
04:08 rally towards 275 level.
04:10 So I think buy on decline could be there in REC Limited.
04:14 And apart from that, if you look at the other stock which witnessed some profit booking
04:18 decline, I believe some sort of consolidation could be there.
04:22 Let them find support on hourly chart and the lower time frame chart and the next leg
04:26 of rally could be there as well.
04:28 Right.
04:29 So that's with regards to REC as well.
04:32 Moving on, how are you looking at the pharma pack from Aurobindo Pharma to Granules to
04:38 Glenmark?
04:39 All the three counters seeing a bullish setup in trade today, good moves coming in there.
04:44 What's the sense?
04:45 Yeah, so positively on the pharma name and especially if I talk about Aurobindo Pharma,
04:51 here we have seen consolidation breakout.
04:53 In fact, we have seen long buildup and this consolidation breakout with rounding formations
04:58 with surge in volume indicating uptick.
04:59 So in fact, we are requiring to buy on Oro Pharma.
05:02 One can buy with support of 880 and stock can head to us around 940 kind of level.
05:09 Glenmark also seen the buildup of long positions.
05:11 So one can buy for an upside move of 5% to 7%.
05:16 Can buy with support of 845, it can go to around 888 kind of level.
05:20 So positively on the Oro Pharma, Glenmark and other pharma name as well in this market
05:24 scenario.
05:25 OK.
05:26 And if you have to look at a few other names, say for that matter, IDFC First Bank, what's
05:33 the setup looking like?
05:36 So if I look at IDFC First Bank, already the stock has seen good run up in last couple
05:41 of months.
05:42 However, in last two days, we have witnessed some profit working decline, but major trend
05:46 is in tech.
05:47 So buy on decline will be the opportunity.
05:49 If you look at the weekly chart, we have seen really from 54 to almost 100 plus in last
05:55 22 weeks.
05:57 So some sort of profit booking decline is required and then only we may catch the next
06:01 leg of rally.
06:02 So I think 85 to 87 is major support to drive the next move to us 100 level in IDFC First
06:08 Bank.
06:09 Right.
06:10 So that's with regards to where IDFC goes as well.
06:14 I'm just looking at a few of the other names where we are seeing some good, fresh, long
06:20 positions being added, specifically with a PNB in trade.
06:26 Open interest addition is also pretty strong.
06:28 If you see the volumes, that's also absolutely on the firm footing.
06:32 What should the strategy be?
06:35 So already I mentioned about this name when you ask about the banking space.
06:39 Correct.
06:40 Correct.
06:41 So let's skip that one.
06:42 No, I'll add the conviction here.
06:45 I suggest to buy this stock with support of 68.
06:49 And here we are having target to 77 to 79 level.
06:52 We believe most of the PSU banks and in fact, CPS index, CPM and Central Public Sector Enterprises
06:58 are likely to do well.
07:00 And PSU banks are giving the breakouts.
07:02 And that is the reason that you and me and the market trend again, again, giving the
07:06 opportunity and the tick to pick any kind of PSU bank.
07:10 So PNB, Kendra Bank, followed by SBI will be three top pick in the PSU segment and PNB
07:16 still can deliver the momentum 7 to 10 percent.
07:20 Right.
07:21 And how are you looking at a Coal India because the momentum seems to be coming back.
07:30 I think you asked about Coal India.
07:33 Yes.
07:34 Right.
07:35 Yeah.
07:36 So if I talk about the Coal India, we have seen some profit booking decline in last two
07:41 days, but again, supports are there.
07:43 I believe 268 is the major support and with the support of 268, again, this stock has
07:49 potential to rally to us 295 to 300 levels.
07:53 Right.
07:54 Chandan, let's see RBL Bank.
07:57 I know again, I'm talking about a banking counter, but RBL or if you talk about a lot
08:01 of financial names, majority of the banks and NBFCs are seeing short covering.
08:08 Right.
08:09 Now, is this something where you expect buying to continue then?
08:15 So I'll focus more on the PSU banks and selective heavyweights private bank because these banks
08:23 are giving tear up tick.
08:25 So in bull market, better to be with the counters where you are reading long rather than picking
08:30 the stock which are witnessing short covering.
08:33 But yes, in reply to your RBL Bank questions, for last trading season, we have seen sharp
08:37 decline from 234 to 216, but exactly it took support near to 50 exponential moving average.
08:44 So those who are looking to buy can put support near to 220 and this bounce can extend to
08:49 235 to 29 levels.
08:52 Right.
08:53 From the metal pack again, Nalco and even Hindalco, if I'm not mistaken, Hindcopper,
08:59 if I beg your pardon, Nalco and Hindcopper, both of these are seeing a short covering
09:03 rally in trade today.
09:05 What should the strategy be?
09:08 So like these stocks fell down on last trading season when entire mid-cap stocks were heavyweight,
09:14 high beta stocks were falling.
09:16 So I think let them get some stability.
09:18 Volatility and beta has increased, IV has increased.
09:23 Today Nalco is shedding open interest by 4% with surge in price of 2%.
09:28 So as of now, we have support near to 94, but call writing is clearly visible at 100.
09:34 So let it surpass above 100 in Nalco, then only up move will be there.
09:38 So in metal space, I think let's wait, be with the sector and the stock which are showing
09:43 more momentum.
09:44 So I think I'll go for some sideline in the metal name, looking at some volatility from
09:48 the global markets.
09:50 Right.
09:51 So that's with regards to where individual stocks go.
09:55 So apart from the names that we've discussed, anything else that comes to your radar that
09:58 could be a good investment opportunity?
10:00 Yeah, so I think already you asked questions which are on our radar and watch, but let
10:07 me put my effort.
10:10 So PNB will look for move towards 82.
10:13 We look for a move towards 77 to 80 kind of levels.
10:19 Then we can look at the counter like SBI, which has given a consolidation breakouts.
10:26 Axis Bank I'll focus, major trend is positive, given a consolidation breakout.
10:31 Some short covering is clearly visible.
10:33 In fact, 1000 put started to witness put tracking activity.
10:38 So now with support of 995, we can see a rally towards 1050.
10:42 So Axis Bank is one, PNB or SBI are other name, which one can keep on radar.
10:48 And if I explore the other name, Pharma, I'll focus on Oro Pharma.
10:52 We have seen very positive price pattern.
10:54 So we'll be looking at the same and Stockland in the moment of 3 to 5 percent.
11:00 So it to Pharma, banks will be on focus looking at the consolidation breakouts and positive
11:05 price setup along with the derivatives data.
11:08 Right.
11:09 So these are a few of the names that one should be watching out for as well.
11:13 Thank you, Chandan, so much for joining us on the show and sharing the views.
11:16 But clearly, a close above those 20000 levels in that 20050 is what we are tracking.
11:22 And there's a good number to watch out for as well.
11:25 Pretty close to the record high levels that we saw in today's session for intraday records.
11:30 400 points up move and clearly outperformance coming in from Bank Nifty with the PSU banking
11:36 space also seeing some smart moves.
11:39 That's all that we have on this session.
11:40 Thanks for watching.
11:41 And lots more lined up on the other side.
11:43 Please stay tuned to BK Prime.
11:44 Thank you.
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