Devangshu Datta analyses 7 stocks for investors

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Bajaj Auto BSE | NSE 23/05/12 Are Mutual Funds betting on Bajaj Auto? Other Stocks in this news Tata Motors | Hindustan Copper | Hindustan Unilever | Ambuja Cements | ACC | United Spirits |

Devangshu Datta, consulting editor at the Business Standard finds that the Nifty is in an uncertain zone. He sees a possible 150 point move but it could swing either up or down.

"You might get a fall until 4,600 if people start selling. You might get a rise until about 4,900 if people start buying. On the basis of the first session in the new year, I would say that it is mildly positive," says Datta.

He also gives his views on specific stocks like Bajaj Auto , Tata Motors , Hindustan Copper , HUL, ACC, Ambuja Cement and United Spirits.

Below is an edited transcript. Watch the accompanying video for more.

Q: How are you approaching the Nifty now?

A: About the market in general, the Nifty has been very indeterminate. It is possible that you might get a 150 points move. If you get a 150 points move it could be in either direction. So you might get a fall until 4,600 if people start selling. You might get a rise until about 4,900 if people start buying. On the basis of the first session in the new year, I would say that it is mildly positive.

If you are going long, set a stop loss at 4,700 if you are going short set a stop loss at 4,800 and if like me you do not think the market direction is very clear you might consider something like taking a long 4,900 call and a long 4,600 call, 150 points off the money and that strangle will gain quite substantially if the market does move say 5,200 points in either direction.

Q: What do you see on the charts of Bajaj Auto now?

A: In Bajaj Auto, there is a definite downtrend on fairly high volumes. If the downtrend goes into a third session the stock is likely to test Rs 1,400. There is a possible chart target of about Rs 1,370 also. If you go short, keep a stop loss at about Rs 1,445 and shift the stop loss down as the stock falls, and may be between Rs 1,410 and Rs 1,415 you could consider booking partial profits.

Q: How is the chart of Hindustan Copper looking which has moved up sharply in the last couple of days?

A: Hindustan Copper gave a big breakout in the last couple of sessions. There is fair amount of volume and the stock has moved up. You can see a short-term target of about Rs 270 and downside could be at something like Rs 225-228. So if you are going long you probably need to keep a stop loss somewhere around the Rs 230 level and move the stop loss up as the price moves up. Probably if it moves until about Rs 270 start booking profits.

Q: On the autos the only thing that is moving against its peers and seeing a lot of interest on the DVR side is Tata Motors. On the charts what do you see?

A: Tata Motors seems to have made a small breakout. It has moved above Rs 200. You can set a target of something like Rs 205-207 perhaps; you need to keep a stop loss at about Rs 196 or Rs 197 and go long. At around the Rs 205-206 make a call may be book partial profits because you do not know how much further it will go.

Q: On the midcap side, United Spirits made a smart comeback. Is the chart looking good?

A: United Spirits is bouncing sharply of a recent low; it seems to have hit resistance of about Rs 575-580. If it crosses Rs 575-580, than it will probably move until Rs 595-600. Very volatile and very difficult to tell on today's move whether you have any supports close to the current price. So if you are going long, I suggest keep a stop loss at Rs 545-550 and increase the position above Rs 580 and move the stop loss up until Rs 575 or so.

Q: How are the charts of Ambuja and ACC looking now?

A: The Ambuja Cement stock has hit what looks like a decent support in between Rs 145-150. It has tested Rs 147-148 levels today. If that support holds, the stock could go back until Rs 157-159. One problem is that the entire cement industry seems to see a sell-off. But I would say tentatively you can keep a stop loss at about Rs 147 and go long and hope to pick up a price of about Rs 157 or so. If the stop loss breaks, there could be a considerable downside. If the stop loss breaks immediately reverse the position.

In ACC there is a definite downtrend, the stock is likely to test the Rs 1,070-1,080 levels and I would say may be go short. If you are shorting, you need to keep a stop loss at about Rs 1,125. There is a possibility of taking a paired position with Ambuja if you can manage the mathematical ratios.

Q: What did you make of the slip in HUL yesterday?

A: Hindustan Lever seems to have had a reaction of a recent high. There is support just below the current price around Rs 392 or so. There is a chance that if Rs 392 is broken it might fall until Rs 385 and if the trend is reversed and it starts moving up again you will see resistance at about somewhere between Rs 407 and Rs 412. I would suggest that if the stock is opening weak you might get a fall until Rs 385 and if it is opening strong than you might get a bounce until Rs 407.