3 Trading Ideas For The Next 3-4 weeks, Suggested by Mehul Kothari in an Interview
“The hourly charts show a positive crossover of 50-SMA with 200-SMA which is a bullish sign, thus unless 14,400 is not breached we are still hopeful for the upside,” said Mehul Kothari, AVP – Technical Research at Anand Rathi in an interview.
Further, when questioned about Bears control over Dalal street despite Govt giving assurance of 2 billion jabs, he replied that on May 10, the Nifty index attempted to cross the 15,000-mark but failed to do so. Later followed with some pressure in our markets. The primary reason could be the softness in the global markets. The US markets including other Asian markets underwent a decent correction during the week.
As a result, our markets too followed them. On the other hand, a slowdown in the vaccination program for India too dented the sentiments.
He also talked about how Small & Midcaps remained resilient in the week gone by and fuelled the optimism in the broader market space?
He said, “We have been constantly echoing our bullish view on the broader markets. We reiterate that in any bull run when the benchmark goes into some consolidation; it’s the midcap and smallcap which outperforms and this is what is happening. They might continue with their upside in the coming weeks too.”
Further commenting on the price action of Utilities index he said, “Recently, the Utility index confirmed a major breakout above its 2018 peak of 2,331 and the rally we saw in them was just an after-effect of the same.”
“Many stocks PFC, NTPC, GAIL, etc. in the index were technically looking lucrative with regards to risk-reward ratio. However even they were not spared on Friday as the index closed with a cut of over 2%,” added Mehul Kothari.
Talking of the IT sector, he said, “Of course it seems to be profit booking in the IT stocks. As a part of sector rotation, we witnessed buying interest in FMCG while the NIFTY IT was under pressure.”
“Apart from profit-booking; strength in INR from the zone of 75.50 towards 73.50 could have added some skepticism to them.”
Three trading ideas for the next three-four weeks?
- Indiabulls Real Estate: Buy | LTP: Rs 81 | Stop Loss: Rs 75 | Target: Rs 92 | Upside: 13 percent
- RIL: Buy | LTP: Rs 1,936 | Stop Loss: Rs 1,875 | Target: Rs 2,040 | Upside: 5 percent
- Ramkrishna Forging: Buy | LTP: Rs 648 | Stop Loss: Rs 575 | Target: Rs 770 | Upside: 18 percent