ET NowIn a chat with ET Now, Sandeep Wagle, Founder & CEO, Power My Wealth, shares his views on the markets and some stocks. Excerpts:
ET Now: Can the market uptick on Friday sustain on Monday morning?
Sandeep Wagle: It can sustain up to 50 to 70 points. So, that makes 8030-8040 the target levels on the spot Nifty. The closing on Friday was around 7960-7965 or 7970 levels. At those levels, I would still expect some kind of correction in the market. More so, we have a truncated week. So I do not expect a rally or a correction or a fall either way. I mean the market may witness a lot of choppiness, 7850 on the downside and 8050 on the upside. We are somewhere in between now. So the moves may not be sustained, but yes, the market can go up by another 50-70 points, with individual stocks outperforming. That is quite possible.
ET Now: Would you prefer a JSPL or a Hindalco? What are your views here?
Sandeep Wagle: I would avoid getting into these stocks. Both of them, according to me, are bearish. They may bounce back. The bounce back may continue, but at higher levels they will witness some selling. Bottom is not yet done and as of now I am still very clear on that. So I would avoid going long in any of the stocks.
ET Now: One has seen volatility in JP Power and JP Associates this week. How do you approach the names, come Monday?
Sandeep Wagle: I have been a seller in both of these stocks and even now JP Power has bounced back. But at higher levels it will face resistance at 14-14.5. So I do not think it will get past that, though both of the stocks have fallen quite a bit. I do not see any sense in buying them even at lower levels and I would strictly advise avoiding any kind of bottom fishing. In that sense they are a strict no-no for me. Whether one wants to go short here, that is a different question. I still see lower levels. So yes, one can go short here or on a little bit of bounce back.
ET Now: I want to talk a little bit about the Bank Nifty and what are the charts now indicating to you because it has had a tough ride all of this week, besides of course the bounce that we saw on Friday?
Sandeep Wagle: If you talk of the Bank Nifty, for the short term, it has made bottom at 15,200. On the upside, I do not see it break the 16,100-16,050 range. Another maybe 300-350 points. So, see a lot of volatility within that. I do not see 15,300 being broken in fact. I would talk of this 500-700 point range in which the Bank Nifty is likely to move. I will not term it as bullish. I would still term it as a bounce back move and from there, from these levels of 16,000-16,100 again some selling can come in, which can bring it back to 15,400-15,500 levels. So it would be broadly range- bound in the 500-600-point range.
ET Now: Which are the top two or three stocks that traders should keep an eye on Monday morning?
Sandeep Wagle: I can talk of my calls. A sell in Bank of India at higher levels. This stock is looking rather weak. So I would sell it in the range of 254 to 258, with a stop loss of 265 and I would look at targets of 220 over the next few days, not on probably Monday or Tuesday, maybe over a couple of weeks. The second call is a buy in Voltas which gave a breakout on Friday and I expect that move to continue. I expect that momentum to continue. I would buy it with a stop loss of 234 and a target of 255.
ET Now: Two stocks which also moved up in late Friday session were Sun Pharma and Ranbaxy. Would you buy into them on Monday morning?
Sandeep Wagle: Not really because at around 840 levels, Sun Pharma will face a lot of resistance. Not to say it will be weak, but it may move sideways and I would prefer to play Sun Pharma as a buy on every correction. In fact, at around 780 levels, we have recommended buying as investment with a 3 to 6 to 12 months’ view and a target beyond 950 or so. That has got nothing to do with trading. As a trade, I see Sun Pharma in the range of 790 to 840. Nearer 840, you should book out, wait for corrections to buy. Inherently, this stock is strong. I am not that comfortable taking trade in both Ranbaxy and Sun Pharma. As an investment, Sun Pharma is very comfortable and the right levels are somewhere between 800 and 780.
ET Now: Can the market uptick on Friday sustain on Monday morning?
Sandeep Wagle: It can sustain up to 50 to 70 points. So, that makes 8030-8040 the target levels on the spot Nifty. The closing on Friday was around 7960-7965 or 7970 levels. At those levels, I would still expect some kind of correction in the market. More so, we have a truncated week. So I do not expect a rally or a correction or a fall either way. I mean the market may witness a lot of choppiness, 7850 on the downside and 8050 on the upside. We are somewhere in between now. So the moves may not be sustained, but yes, the market can go up by another 50-70 points, with individual stocks outperforming. That is quite possible.
ET Now: Would you prefer a JSPL or a Hindalco? What are your views here?
Sandeep Wagle: I would avoid getting into these stocks. Both of them, according to me, are bearish. They may bounce back. The bounce back may continue, but at higher levels they will witness some selling. Bottom is not yet done and as of now I am still very clear on that. So I would avoid going long in any of the stocks.
ET Now: One has seen volatility in JP Power and JP Associates this week. How do you approach the names, come Monday?
Sandeep Wagle: I have been a seller in both of these stocks and even now JP Power has bounced back. But at higher levels it will face resistance at 14-14.5. So I do not think it will get past that, though both of the stocks have fallen quite a bit. I do not see any sense in buying them even at lower levels and I would strictly advise avoiding any kind of bottom fishing. In that sense they are a strict no-no for me. Whether one wants to go short here, that is a different question. I still see lower levels. So yes, one can go short here or on a little bit of bounce back.
ET Now: I want to talk a little bit about the Bank Nifty and what are the charts now indicating to you because it has had a tough ride all of this week, besides of course the bounce that we saw on Friday?
Sandeep Wagle: If you talk of the Bank Nifty, for the short term, it has made bottom at 15,200. On the upside, I do not see it break the 16,100-16,050 range. Another maybe 300-350 points. So, see a lot of volatility within that. I do not see 15,300 being broken in fact. I would talk of this 500-700 point range in which the Bank Nifty is likely to move. I will not term it as bullish. I would still term it as a bounce back move and from there, from these levels of 16,000-16,100 again some selling can come in, which can bring it back to 15,400-15,500 levels. So it would be broadly range- bound in the 500-600-point range.
ET Now: Which are the top two or three stocks that traders should keep an eye on Monday morning?
Sandeep Wagle: I can talk of my calls. A sell in Bank of India at higher levels. This stock is looking rather weak. So I would sell it in the range of 254 to 258, with a stop loss of 265 and I would look at targets of 220 over the next few days, not on probably Monday or Tuesday, maybe over a couple of weeks. The second call is a buy in Voltas which gave a breakout on Friday and I expect that move to continue. I expect that momentum to continue. I would buy it with a stop loss of 234 and a target of 255.
ET Now: Two stocks which also moved up in late Friday session were Sun Pharma and Ranbaxy. Would you buy into them on Monday morning?
Sandeep Wagle: Not really because at around 840 levels, Sun Pharma will face a lot of resistance. Not to say it will be weak, but it may move sideways and I would prefer to play Sun Pharma as a buy on every correction. In fact, at around 780 levels, we have recommended buying as investment with a 3 to 6 to 12 months’ view and a target beyond 950 or so. That has got nothing to do with trading. As a trade, I see Sun Pharma in the range of 790 to 840. Nearer 840, you should book out, wait for corrections to buy. Inherently, this stock is strong. I am not that comfortable taking trade in both Ranbaxy and Sun Pharma. As an investment, Sun Pharma is very comfortable and the right levels are somewhere between 800 and 780.
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