KYI: Expert says Nifty may see 6165, suggests stocks

The Indian stock market witnessed a spectacular rally on Friday. Global cues and government’s policy initiatives have boosted invertors’ sentiments. The Sensex is around 18,500 and the Nifty is above 5,550.

Moneycontrol.com got technical analyst Hitendra Vasudeo to answer the stock queries you sent us on our Facebook page as part of KYI (Know Your Investment).

Check out his comments.

Nikhil Gupta: Should one buy Nifty at current levels?

A: Corrective dip to 5,498-5,410 can be used for buying with a stop loss of 5,215. Expect a rally towards 5,800-5,850-6,022-6,165. Resistance will be at 5,650. Breakout has already been witnessed above 5,450 last week. Expect some resistance at 5,650. On further breakout and close above 5,650, expect a rise towards atleast 5,850 and maybe to an outer extent to 6,165.

If the level of 5,200 is not violated then the bias remains up and we may see the rise get higher in term of price and may last till March 2013. Next few days could be crucial. We don’t need false breakout situation now.

Dhaval B. Patel: What are your top ten buys for three months?

A: The list is as below:

Pratik Mohite: What is your target for Infosys?

A: As per weekly chart, corrective dip to Rs 2,583-2,522 can be used for buying with a  stop loss of Rs 2,470. Expect a rise towards Rs 2,805-2,994.

Rahul Kumar Sharma: What is your call on State Bank of India (SBI)?

A: Corrective dip to Rs 1,931-1,886 can be used for buying with a stop loss of Rs 1,800. Expect a rise towards Rs 2,088-2,127-2,171-2,252. Profit booking on long position may be undertaken at Rs 2,171 or above in days to come. If the stop loss of Rs 1,800 is violated then stock will continue to remain bearish. Last week was attempt of reversal. A fall and further close below Rs 1,800 will puncture the reversal that was seen last week on Friday.
 
Apoorv Saxena: What is your six-month target for Bharat Heavy Electricals (BHEL)?

A: Support for BHEL is seen at current level, Rs 190. Investors may buy now with a stop loss of Rs 190. On fall and close below Rs 190, the stock will slide towards Rs 131. Therefore, any buying undertaken needs a stop loss at Rs 190.

Resistance for the stock will be at Rs 219-220 and Rs 239-240. First signs of major reversal will be above Rs 220 and then above Rs 240. If these resistance are crossed then important bottom for BHEL could be in place.

For the time being, the range is Rs 240-190. Violation of Rs 190 will set a downside target of Rs 130. Breakout and close above Rs 240 may confirm a reversal for a rally to test Rs 328 and can even move higher. But for the time being, there is a need to keep a stop loss of Rs 190 for long position.
 
Nikhil Gupta: What is your target for Hero Motocorp for this month?

A: Upside level for Hero Motocorp can be Rs 1,903-1,952-2,001. Major support cluster is in the range of Rs 1,800-1,700. Till Rs 1,700 is not violated once again, the bias is up now  for Rs 1,903-2,001 range.
 
Tarvinder Singh Sihint: What about Kingfisher Airlines?

A: Corrective dip to Rs 10.27-9.18 can be used for buying with a stop loss of Rs 7.95. Resistance will be at Rs 11.90. On further breakout and close above Rs 11.90, the stock may scale higher towards Rs 12.80-14.11-15.80. Traders need to know the risk and plan trade accordingly.
 
Kunnal Sharma: What is your view on Tata Motors?

A: Corrective dip to Rs 261.6-251.2 can be used for buying with a  stop loss of Rs 242. Expect a rally towards Rs 316. Resistance will be at Rs 275-276. On further breakout and close above Rs 276, expect the rally to get confirmed towards Rs 316.
 
Pulak Priyesh: What is your three-month target for Bharti Airtel?

A: Resistance for the stock is at Rs 260-265 for near-term. A rise and close above Rs 265 may trigger a pullback towards Rs 280-300-320.

Support will be at Rs 240-220. A fall and close below Rs 220 may extend the slide. Looking at the quarter chart,  the strategy would be to exit long and sell on rise to Rs 274-309 with a  stop loss of Rs 330. Till the level of Rs 331 is not crossed and close the bias as per the quarter chart would be to exit long irrespective of rise on intra-day, daily , weekly and monthly chart.

On quarterly chart, reversal will be seen above Rs 330. If that happens whenever then we may witnessed a rally to get past the Rs 447 or above. Till such time, Rs 330 is not crossed bias remains to exit long. Traders and investors who wish to hold long position from here on needs to maintain a stop loss of Rs 220.

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Joice Kottathil: What about Ambuja Cements and Idea Cellular?

A: Ambuja Cement, corrective dip to Rs 188-176 can be used for buying with a  stop loss of Rs 166 for medium to long-term perspective. Expect the stock to rally towards Rs 270 with volatility and minor correction. The rally in long-term may stretch to Rs 411.

Idea Cellular, resistance will be at Rs 87-88. A breakout and close above Rs 88 may show a rise towards Rs 91-103 range.  Major rally will be seen in the stock only above Rs 104. Traders and investors need to take off long position at Rs 91-103 range as the opportunity arises. Subsequently, wait for that major breakout above Rs 103.

In Idea, major weakness will be seen below Rs 71 and Rs 65. For near-term to short-term, corrective dip to Rs 81-77 can be used for buying with a  stop loss of Rs 65 to exit at Rs 91-103 range.

Shivam Mehrotra: What is your target for Reliance Power?

A: Traders and investors holding long position need to keep the stop loss at Rs 67.  The objective will be to exit long on rise to Rs 89-103 range as the opportunity arises.

Investors may keep the stop loss of Rs 67. Whenever in future in time to come, a breakout and close above Rs 140 is seen then major rally may emerge for the stock.

Long-term investors may remain invested. But on short-term daily and weekly chart, whenever overbought zone comes, the stock must be exited. The stock is currently in the bias of exit long and sell on rise strategy.

Ashwin Shankar Iyer: What about Jaiprakash Associates?

A: Traders and investor long in the stock need to keep the stop loss at Rs 61. Resistance will be at Rs 79-80 and Rs 88-90. Whenever the stock gives a breakout and close above Rs 90, expect the stock to show a major rally. But till such time, outlook remains to exit long on rise to Rs 80 and Rs 88-90, whenever the opportunity arises.

Karan C Parnami: What is your view on Power Finance Corporation (PFC)?

A: Traders and short-term investors long can keep the stop loss at Rs 158. The objective is to exit long on the rise to Rs 169-174-180. 
Sudhakar Naidu: Should one invest in gold now?

A: Keeping Gold Bees as the benchmark, buy and keep room to accumulate at 2990 and 2862, whenever the opportunity arises with a stop loss of 2770.

Broadly, buy and remain invested. Whenever gold comes in deeper correction, in oversold zone then accumulate broadly.
Do SIP in GOLD BEES.

Piyush Chawhan: Which stocks will you recommend for the long-term (10-15 years)?

A: Advanta, Ambuja Cement, Apollo Tyres, Coal India, Castrol, Cipla,  Core Education, Dish TV, DLF, Divis Lab, Geometric Soft, HCL Tech, Financial Tech, HDFC, Jubilant Foods, LT, Orient Paper,  Tata Global,  TCS, Tech Mahindra and  Zee Entertainment.

Disclaimer: Trading and Investments decision taken on our consultation are solely at the discretion of the traders/investors. We are not liable for any loss, which occurs as a result of our recommendations. This document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. While we are not soliciting any action based upon this information, all care has been taken to ensure that the facts are accurate and opinions given fair and reasonable. Neither, Hitendra Vasudeo, Vasudeo Investments, www.stockmechanics.com, hitendravasudeo.com nor any of its employees shall be responsible for the contents. Our directors or employees, may from time to time, have positions in, or options on, and buy and sell securities referred in our reports.