MARKET & STOCK NEWS FOR TRADING NEXT WEEK

See limited upside in Maruti; bullish on HDFC, Reliance: Sandeep Wagle 

(Source: Economic Times)

In a chat with ET Now, Sandeep Wagle, Founder & MD, APTART Technical Advisory Services, shares his views on the market and some stocks. Excerpts:

ET Now: What would you do with trades on either the CNX IT or Infosys for that matter?

Sandeep Wagle: Well, over the last at least five to seven trading sessions, I have been maintaining that I am not very comfortable buying into the CNX IT and it has worked out very well for us. At this level, of course, I do not want to sell. We had a short at around 9900 in term of some of the stocks or rather we have asked to sell delivery. Now, from here we may witness a bounce back, a bounce back to the tune of 9600-9650 from a level of 9430-9440. So I would rather be selling there rather than buying for that. I still do not see that strength which will take the CNX IT beyond 9900 or 10,000. I mean that is where I will really get bullish. So I do not see anything of that kind as of now.

ET Now: How do you expect Maruti to trade come Monday morning?

Sandeep Wagle: It is not that bad. It has found support at 1710-1720 and probably upside is also capped. 1785 to 1800 is where I see it go in case the market bounces back. So I see limited upside in the stock.

ET Now: I want particular reference to the oil marketing companies - BP, HP, IOC. Excellent Thursday, no follow-up action on Friday. How do you trade the next week?

Sandeep Wagle: Do not take a call for a few days, take a call for a few weeks to a few months and this trade will work out for you. I am liking BPCL of the lot. BPCL has shown good pattern, price pattern and volume built up and now any corrective move towards 430, I am even willing to buy at somewhere between 440 and 430, take three to six months' view and take a stop loss of below 400, take a 7-8% risk and play for a 520-530-550 target upside. So maybe Rs 30-40 risk downside, Rs 100-120 risk upside, but the time has to be a little higher, it cannot be a few days certainly.

ET Now: What is the sense that you are getting about metal names? Would you look to shop them again and do you see foresee further weakness?

Sandeep Wagle: No. They are at support level, specifically Tata Steel. So if at all I sell them, I would sell them on a bounce back and I also have a view that the Nifty can bounce back 50, 70, 80 points. So in that sense I am not very comfortable taking a short position especially in metals.

ET Now: What about your trading ideas?

Sandeep Wagle: I too start with IDFC - stop loss of 108, target of 130. A buy in HDFC. The second call is a buy in Reliance Industries - stop loss of 870, target of 918, and a sell in Hexaware - stop loss of 153, target of 138.

ET Now: Have you looked at the charts here and if somebody is long on HCL Info, what would you advise?

Sandeep Wagle: Well, if somebody is long, one can hold on; if somebody is not long, one can still create a long position, highest volume this week and a very clear price breakout in the offing. Above 40 it will give a breakout which can lead the prices to somewhere around 48 to 50. So on any decline to 35-36, currently at 38-38.50, I would be a buyer with a stop loss below 32 and a target of anywhere between 48 and 50.

ITC, Titan and UltraTech can deliver more than 10% appreciation before elections: Pankaj Pandey 

(Source: Economic TImes)

In a chat with ET Now, Pankaj Pandey, Head Research, ICICIdirect.com, shares his views on ITC, Titan and UltraTech Cement, Excerpts:

ET Now: Give me three stocks where you are advising your clients that they should buy them today and you were reasonably confident of a 10 per cent appreciation before the elections?

Pankaj Pandey: Three stocks which one can look at one of them would be ITC, the other one would be a Titan because of the currency appreciation what we have seen and the third stock would be UltraTech Cement we believe that this particular stock can also deliver more than 10 per cent.

ET Now: UltraTech, Titan and ITC the common linkage here is that all of them are very expensive stocks?

Pankaj Pandey: If you look at we like all the three stocks for different reason again FMCG gets preference because of their relative under performance which we would expect from IT and pharma space plus the relatively better multiples. UltraTech if you look at is trading somewhere about more than $120 EV per tonne on a forward basis but having said that if you look at the balance sheet we do not see any concerns and as and when the demand gets revived we would expect this stock to do or in fact the sector to do quite well.
Last quarter was quite bad so from that perspective lower base we would expect this sector to do well. Titan we like from the fact that we would expect government to sort of ease off certain controls so because
of which we believe that the jewellery segment would continue to drive for the growth going forward and trading at about 20 times so we believe that even though it might appear expensive but it has always been expensive so we believe these stocks can deliver more than 10 per cent.

Markets may not move much in the next 8 to 10 sessions: Ashwani Gujral 

(Source: Economic Times)

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his views on market outlook, Excerpts:

ET Now: You mentioned that we have shrugged off the weakness at least in the last one hour of trade, does this augur well for the week ahead?

Ashwani Gujral: We have had a sharp rally and now we are probably going to chop around. At lower levels, maybe a 6400-6420 is the support and you can say broadly 6600 is the resistance so you could do this 200-point range for a bit and meanwhile individual stocks will do their thing so the idea here should be to look at the sector of the day and play stocks and the index may not do a whole lot.

Meanwhile, on declines Bank Nifty should be bought, on rallies CNX IT should be sold so that is a broad idea you should have for trading but overall I do not see the market moving a whole lot in the next say 8-10
sessions.

Global factors to keep markets in the 6400-6600 levels: Sudip Bandyopadhyay 

(Source: Economic Times)

In a chat with ET Now, Sudip Bandyopadhyay, President, Destimoney Securities Pvt. Ltd., shares his views on market outlook, Excerpts:

ET Now: What is your sense on the range for the market even though you are talking about momentum building in and lot of inflows coming into the market, where does it take the market in terms of index?

Sudip Bandyopadhyay: Well the point I am trying to make is that domestic indicators are good. I do not see them weakening till the election results are out at least. The market will depend on global news flow and I do not think global news flow is too positive to sustain a major rally even in India. So the market will keep hovering in this range. We have seen a rally. We will keep seeing the market hovering in 6400 to 6600 kind of levels.

ET Now: In the last three days we were talking about the market just coming off after that 6550-6560 mark and today also we started off with a bit of stake, we have recovered quite a bit of ground today as well
how do you expect the markets to behave till May 31st or May 16 as the date may be when the election results come out?

Sudip Bandyopadhyay: There are too many uncertainties stepping into the global environment. There are problems in China, we can find excuses trying to explain that but the fact remains China is in trouble and
that does not augur well for multiple sectors and multiple economies.

Well indirectly at some point of time Chinese problems may results in benefits for India but that it is a long term discussion, in the short term and for the markets anything bad happening in China will lead to risk aversion amongst FIIs and that will definitely have short term-medium term impact on Indian markets.

The second thing which is playing in the markets mind globally today is the results of the Sunday's Crimean referendum what happens there how the geopolitical situation shapes up post Sunday's referendum so these
global uncertainties is playing in the minds of global investors and they are being cautious.

Domestic markets we have good news flow, the WPI numbers were extremely encouraging, we also expect the corporate results for last quarter which we are currently on to be good so domestic markets look good but global news flow will dominate the market till election results are out.

No immediate upside seen but market may hit 6550-6560 levels: Mitesh Thacker 

(Source: Economic Times)

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, shares his views on market outlook, Excerpts:

ET Now: What is it that you are looking at on the index, there is a little bit of a rebound that is coming in, is it signalling an upward bias from here rebound really that is stretching into an upturn and uptrend again for the market or do you see this as just a blip?

Mitesh Thacker: I have been saying that around 6430-6420 could be a good buying range. The index has just managed to give and bounce back from those areas, I do not see an immediate upside happening over here but what the index can do is to hit towards 6550-6560 which in the last four-five days has been some kind of an intraday high.

We might find newer levels developing with a new range between 6550-6560 on the upside to about 6430-6420 on the downside. If we start getting past 6550-6560 and because the structure and the chart trend is on the positive side then we might see an immediate extension of the up move to about levels of 6680-6700.

We will explore buying opportunities in the financial sector, from lower levels we have seen strong reversals happening in IDFC and LIC Housing Finance so that is where I would be comfortable taking a long position.