Mitesh Thacker's top 5 picks for today's trade

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Mitesh Thacker's top 5 picks for today's trade

Mitesh Thacker of miteshthacker.com is bullish on State Bank of India (SBI), Chambal Fertilisers, Hindustan Construction Company (HCC) and Shree Renuka Sugars. However, he is bullish on Gas Authority of India Limited (GAIL).

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Stocks in news: SAIL, Jet Air, Pantaloon, Ranbaxy, Gulf Oil Stocks in news: Rel MediaWorks, Inox, Kingfisher Air, Ansal ALSO READ See previous views by Mitesh Thacker See what other Experts & Brokerages are saying about SBI See messages about SBI SBI BSE | NSE 29/05/12 Are Mutual Funds betting on SBI? Other Stocks in this news Chambal Fertilisers and Chemicals | Hindustan Construction Company | Shree Renuka Sugars | GAIL India | Steel Authority of India | ABG Shipyard | Gujarat NRE Coke |

Here is a verbatim transcrip of an exclusive interview with Mitesh Thacker on CNBC-TV18. Also watch the accompanying video.

Q: What about the Nifty, all over the place yesterday?

A: The immediate outlook is that we are now very close to the 200 DMA where the yesterday's intraday low was just about 15 points higher. In the short term, after having a fall of about 600 points over a couple of weeks, you might see this strong support coming into force. The decline can be arrested over here. We may see intraday volatility happening because of the fact that generally when the market falls, the price movement goes up. So around 4650-4680, you will see good buying coming in. For the short term, we feel that stocks are probably also oversold and will look for some kind of a bounce back. In the short term, we might see some positive action though the upsides and it would be limited. The preferred level would be 4880-4900 on the upside.

Q: What about ABG Shipyard now down 13% in three days and Gujarat NRE Coke ?

A: ABG Shipyard after a very good run up is found some supply at Rs 330-340. The long term charts remain very good. As long as the stock price remains above Rs 275-280, that is the key support area. Hence, I would still be having a positive bias. Infact, this decline can be used to take some long positions with a stop below Rs 270. Rs 330-340 would be a good short term target. Once the stock prices manage to break above that, there could be more upsides which is quite possible if you take a slightly longer term view.

Gujarat NRE is a stock which is been in a declining trend after peaking out at Rs 95. Hence, in the short term nothing much will happen. Rs 70-71 is a good support and that's where the stock is trading. Incase it breaks below Rs 65, it would be a good support. My advice would be very to exit on rallies and the upside target would be about Rs 77-78. Incase you get a bounce back at those levels of pullback if the market improves, Rs 77-78 would be good levels to exit the stock.

Q: Would you consider shorting opportunity on the Nifty at the higher levels?

A: Yes, marginally higher. A couple of days back, when the markets were taking support at about 4,800, we saw that every pullback rally kind of fizzled out at levels of 4940-4950. This would be a tough level to cross during this expiry. In the short term, that level looks very difficult. The closer you get a shorting opportunity around those levels, the better it is in terms of risk recovery equation. I believe that in the short term you might see Nifty heading towards 4880. This looks to be a broader range where the pullback could take us in the next few days. At those levels we will look for some kind of shorting opportunity

Q: One quick chart check on Chambal Fertilisers .

A: The price action was very good yesterday and we saw about 500% jump in delivery volumes compared to Friday and very good addition in the open interest segments. So Rs 72-72.5 are the levels where the stock is peaking out. However, looking at yesterday's price movement and the weekly and monthly charts, I believe this level would be crossed shortly maybe even today and the short term targets are Rs 80-83. In the medium term I believe that the stock would even head higher than these levels.

Q: How would you approach some of these metal stocks like SAIL ?

A: The entire metal pack looks pretty negative. We are negative on steel stocks but even Hindalco and Strelite. Though Sterlite is getting very good support at Rs 730-720, once it breaks you will see more declines happening in the counter. Hence, from a trading point of view, metals will remain avoidable. Incase the market falls further you might see this entire pack underperforming the markets.