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    Sun Pharma and Kotak Bank our top two picks, SBI looks attractive: Mitesh Thacker

    Synopsis

    Nifty might take a breather one of these days but we are looking at targets close to about 8,320-8,340 by the first half of June, says Thacker.

    ET Now
    In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, says Bank Nifty itself is looking attractive as does SBI. Excerpts:-

    ET Now: The technical landscape has completely changed this week. Nifty is at 8150. How are we poised now for this series?

    Mitesh Thacker: I think you are right to say that this week the kind of movement we have seen is clearly trend defining and has changed the landscape of the markets. It is with some force that Nifty has gone up along with certain stocks and the heavyweights like banking stocks, oil marketing companies and energy companies.

    The Nifty might take a breather one of these days but overall, we are looking at targets close to about 8,320-8,340 being tested sometime in the first half of June and now this market has turned from a range-bound market to clearly a buy on dips market.

    ET Now: SBI and BPCL, how should they be traded now come Monday morning?

    Mitesh Thacker: I will start with BPCL. What possibly attracts me over here is the fact that the stock managed to get past the earlier highs of Rs 980-985 which is where it peaked out on weekly closing basis. So, that is a fresh all-time high. That kind of breakout with this kind of momentum, should clearly augur well and as long as the stock can remain above the Rs 980-975 zone, I think the minimum target of the upside here could be about Rs 1080.

    SBI also did go through a big oscillating movement, first it was down and then came up. But it needs to get past Rs 202-203 levels and it was just right there at the closing and if it can do that, then the stock can go towards Rs 223 levels.

    ET Now: What are the trades that you are betting on for Monday morning?

    Mitesh Thacker: I would suggest a buy on Sun Pharma which had a gap up opening on back of positive news flow from Taro and continue to do well. It closed the day at the highs, that is a buy with a stop at Rs 805, for targets of around Rs 850.

    Kotak Bank is also a buy but a conditional buy. It needs to break that band of Rs 740-745 and it has closed right below that so buy above Rs 745 with the stop at Rs 730, for targets of R 780.

    ET Now: Just a final word on the prospects of the Nifty Bank per se because not just the index but the Nifty Bank as well has performed very well. Any trading strategy that one could look to execute?

    Mitesh Thacker: I would be a buyer in State Bank of India if it was to get past these levels of Rs 200 to about Rs 202-203 that is some high swing which the stock had peaked out in the last few weeks back and beyond that I am looking at Rs 225. The Bank Nifty itself also looks attractive to me. I think the Bank Nifty can head towards targets close to about 17,850 and then even 18,100 and amongst the private sector banks, I did highlight Kotak Bank needs to break above Rs 745 for it to trigger some kind of short-term upside breakout.




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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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