Anu Jain's top 5 picks for trade today

Q: We had a great pullback on Friday to 5,050. Do you think this time the Nifty will be able to pass that 5,100 zone where it struggled a bit last couple of times it got there?

A: We have been moving broadly in the band of about 4,890-5,110 within that we have been trying to make new moves up and then testing the bottom. So it's not been very conclusive over the last two weeks although same as we were discussing, the more it stays over 5,000-5,050 odd levels it is indicating as there is buying at lower levels. In technical terms, the support levels are getting stronger. So you have got 4,880 to 4,890 becoming a fairly strong support; you got another support coming up around 4,950 which is kind of strong. So the market sees a lot of buying at those levels. Given that once you basically take out that resistance between we have one resistance very strong around 5,030 levels which we kind of moved with an iffy on Friday and once more before. So is 5,080-5,110, which is a 30-point band which is going to still kind of give some kind of resistance. Once you take that off and with the kind of strength you are seeing in certain sectors, it would be a matter of time before you make a new high.

Having said that, at the same time it would obviously be a lot more dependent on the world markets like before. So if you see any big moves up or down on the other side, that could create either a consolidation period again or it could give you that impetus that we are looking for breaking out over the 5,110 levels.

Q: Have you taken a look at UCO Bank and Vijaya Bank's charts?

A: Yes; all of them look good. UCO Bank is looking good for another 5%; Vijaya Bank has resistance above 3-4% ahead of it. The whole sector looks as if it's poised for a breakout, so the fact remains that which one to choose right now is the bigger thing because UCO is closer about Rs 59.65 is looking good for Rs 64. Vijaya is looking good about Rs 54-55 and probably at Rs 55 if it crosses then you will see Rs 57-58 as a level. I think that's what the reason I felt that probably if somebody didn't want to take a call on particular scrip in this sector buying the PSU bank exchange-traded funds (ETF) is also a good idea if you do not want to leverage otherwise buying the bank Nifty also seems to be a good idea. It's the whole sector which is kind of giving move. Most of them are making higher lows but not made a higher high. There is some issue because some of them had given up very strongly like an India Overseas Bank gave up very strongly to come down from Rs 140 to about Rs 110-108 levels. So once it crosses that Rs 122, you will probably see strength coming in that counter also, so overall very positive charts for the whole sector.

Q: Some of the side sectors like shipping--Mercator Lines, Varun Shipping, etc.--outperformed last week, anything that you like from that pocket?

A: Mercator is a high beta, so once it crosses Rs 63 odd levels, it will attempt Rs 67. It hasn't gone into the Rs 70 for a long time but it is showing potential with the Baltic Dry also doing well. Great Eastern wasn't such a high beta earlier but now moves into 10% zones very sharply. So I think it's around Rs 280; it will attempt the Rs 303-303 levels beyond that Rs 320 can be taken out only once it crosses Rs 302 levels. Shipping Corporation is relatively less beta between the three but that whole sector is poised for an upmove, so it usually makes one large move, consolidates and then moves again. Thus, the overall underlying bias is definitely positive.    

Q: What about some of the micap technology stocks like Mphasis, Aptech, and Patni they are all down between 10-12% through last week?

A: We saw the interest of the whole market from that particular sector last week whether it was Mphasis, which gave up almost from those Rs 790 odd levels to come back or Hexaware which attempted the Rs 94-95 and came down, Patni also came down. So there is some kind of profit taking which has happened and just like how banking has gone into a consolidation phase probably you are going to see that happening here.

However, some of them are moving despite that. So you have a Rolta looking good despite all of that. But overall if this week, last week or the week previous to that we saw TCS, Wipro move whether the market was going down or sideways. You would probably see some kind of a consolidation there where some other sector like banking takes over. So it's just a sector rotation which is happening and which is quite healthy.    

Q: A word on Hindalco?

A: Hindalco looks like it is going to attempt that Rs 140, more than Rs 140 levels but I would keep my stop loss around Rs 127 odd levels. Right now it's in a zone where it's trading between the high and the low it's made about two weeks back. So looks poised for about Rs 142-144 where it kind of went last time when it was having a lot of momentum beyond that one would have to take a view once it reaches there.