2 shares that Kunal Bothra recommends for next week

2 shares that Kunal Bothra recommends for next week – Mail Bonus

The next few days’ trading would be rather sluggish than what we have seen in recent days, and this could probably indicate that we could enter the index range, says independent market analyst Kunal Bothra. Modified excerpt:

RIL is currently around 2800 and its lifespan is 2850, what are the chances that we will see a new maximum on RIL next week?


The chances are quite high with the development we have witnessed in the last one or two weeks. I think it is more important to see the stock price movement free from what is happening in the indices, as even on Friday, the third / fourth part of the session, RIL was trading with a very strong positive bias and that was only in the last one. an hour when the market collapsed sharply that there was some profit posting that was seen on the stock price.

Then

at 2750-2800 levels looks pretty promising and strong. We just hope the stock does not fall below the two-day or three-day low. So when stocks go up, we expect the two-day or three-day low to act as a support level. Assuming that the RIL share does not break the support level, we can expect the share to return to a life-high level.

Do you see risk-benefit movements favorable for the rise now for the index or are we likely to continue to see this stage action?
Following Friday’s prices, the market is expected to lighten up next week. The next few days’ trading would be a bit sluggish compared to what we have seen in recent days, and this could probably indicate that we could enter the index range. 16,800 could be the upper end of the range and possibly 16,400 could be the lower end.

Of course, we also have the RBI strategy lined up next week so that markets would probably be on the fringes there. Looking at the last three weeks or four weeks of inflation, Nifty has reached almost 1000 points from this 15,750-15,800 mark so these are points where traders generally want to take the risk off, make a profit on the table and then probably look at the trigger positions. for the major events of the RBI policy.

If you had to choose one sector, IT versus banking, what would it be? IT has already seen a 5% increase this week while Nifty Bank has performed poorly. Choose?

It is very difficult to predict because the bank index is the strongest, but then we are heading for a big event that could have a much greater impact on Bank Nifty next week.

When you are in such a market week where there will be a big event that can affect a particular sector or index, it is much more important to try to reduce your position and ensure that you do not take too much risk in that asset class.

So it’s not just about the comparison part, it’s more about trying to tailor your risk, especially when you know you’re about a big event that could have serious consequences in these sectors or the price movement itself.

So I would not want to pick and choose either of the index but yes I think if the Nifty IT index and especially people like

and start to get into further recovery mode and if they break Friday’s highs then we can expect the IT index to see a further jump of at least three to five percentage points.

If you had to make a clear conviction bet in the market, what would it be, an open check in all sectors, across all indices, what is one thing that is very clear in the market?
Trust performance is the clearest trade in the market to date and we hope that the stock will be an even stronger pillar in the market that is still fluctuating.

After RIL, do you think Adani Group shares are also trying to jump in?
Not really. We are at a point where markets are reshuffling asset portfolios, risk aversion. Traders are trying to cut the positions and I think in these times you have to make sure that you do not add too much risk or high beta type of sectors and stocks.

The stock company Adani Group has been very successful for the past two to three years, but the fact is that these stocks have not also undergone a major correction. I think the average correction of these stocks is right about 10% or 15% and when you look at the last two years of recovery, stocks have given 10x, 15x returns since the lowest 2020. So after accumulating significantly if you only see a shallow correction you would not want to trade these stocks at least in the near future. So I would avoid the space right now.

Still what kind of stocks are on your radar because given the index level we could only witness a phased movement?
Now that the index has risen by almost 1000 points on Nifty, I would probably keep 16400 as a turning point and until we are over that turning point, I would start buying calls.

I would like to suggest two purchases. The first is

as the shares performed fairly well and even closed last week at almost the highest point of the week and was slightly below the 200-day moving average. So I would suggest buying ICICI Pru, targets that will stay at Rs 580 in the near future and the stop loss will be kept at Rs 535.

The latter would be the acquisition of City Union Bank. At the same time as Bank Nifty is struggling to maintain even a 50-day moving average,

has confirmed its closing over its 200-day moving average. So it’s a sign of strength as the stock has also recovered quite cleverly, almost 15% last week. So I would suggest a purchase at City Union Bank with a ticket at Rs 155 and the stop loss can be kept at Rs 138.

(Disclaimer: Advice, suggestions, opinions and opinions given by experts are their own. This does not represent the views of the Economic Times)

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