Bullish on long-term Nifty chart: Rahul Mohindar

It has been a difficult week for technical analysts in terms of making money because of the huge volatility in market. Yesterday also the Nifty closed below that 5900 level. Rahul Mohindar, viratechindia.com is bullish on long-term on the Nifty chart.

He told CNBC-TV18 that if the Nifty manages to close above 5950 level and maintain above that, then that will be a positive. On the downside Mohindar feels that 5800-5850 is the pocket of support. Below is the verbatim transcript of his interview to CNBC-TV18 Q: How would you approach the next week? We closed again below that 5900 level, would you go long on the market and if yes what are the targets and stop losses that you are recommending? A: One is clearly bullish on the long-term on the Nifty chart. However, what we need to understand is this whole bout of volatility that has taken place, much on expected lines because we have been seeing that 5950-5970 area proving as resistance. Traders are getting a bit shy as we come closer to those levels. Until and unless we move in close above 5950 on a successive basis, I don’t think we are talking of a serious up breakout. If we do manage to close above that 5950 level and maintain above that, I certainly think that the things are changing for the positive in a slightly biggish way. We might even take out that 6100 peak which we recently made in January end. So, we are talking about a serious up breakout pass that. On the downside 5800-5850 is certainly the pocket of support. Unless the market breaks out of any of these levels one can't see a decisive move coming in. However, as I was mentioning one is positive and one should try and look at accumulating the stocks. Q: If you had to line up three or four stocks purely for next week in terms of a trading perspective what would they be? A: I would start by looking at Bharat Petroleum Corporation Limited (BPCL). This is a stock in which we have seen a lot of accumulation over the last three or four weeks. Now, one is sensing some kind of a breakout. The last two or three days we have seen some pickup. I believe is if one could hold on for a three to four month period one could look at targets anywhere between Rs 460-480. So, we are talking about new intermediate highs coming in and buying around the Rs 395 level with a stop below Rs 380. One is kind of risking Rs 15-20 but looking at a 60-70 gain. From a trading and a short-term three to four month perspective it offers a fairly good opportunity with that Rs 380 stop in mind. Rs 460-480 being a target on BPCL one would go long. The second stock which I would look at would be Exide. The stock consolidated for the last two months. We have seen it almost in this range of Rs 120-132. There has been a lot of price action, lot of volume which is filled up in this whole zone. When we finally breakout above Rs 132-135 that is when one could look at a sizeable up breakout. So, the only caveat being that one should wait for that up breakout, wait for Rs 135 to get taken out and Exide would be ready to move to somewhere between Rs 155-160. This was the previous high it made in 2012. So, that could be an interesting short-term opportunity there. The third stock which I would look would be Sun TV. A bit of an aggressive bet here, but what we have noticed is Rs 410-440 in the last three weeks has been the range for the stock. If we look at it from a volume perspective one can see a lot of volume within this price zone. If we study the last six months of volume data, most of the volume is come in around this whole price belt of Rs 410-440. We have started breaking out above those levels, Friday saw that breakout. We are poised for somewhere between Rs 500 and Rs 510 as a target. So, one could go long on Sun TV for that Rs 510 target.