Watch the interview of Amit Harchekar, Chief Technical Strategist at A Plus Analytics with Sumaira Abidi & Reema Tendulkar on CNBC-TV18, in which he shared his readings and outlook on the market, specific stocks and sectors.
Below is the verbatim transcript of Amit Harchekar's interview with CNBC-TV18
Housing Development Finance Corporation
"Housing Development Finance Corporation (HDFC) has given a short-term reversal after testing the 200-day moving average (DMA). We are expecting the pullback in HDFC to extend towards the zone of Rs 1,250-1,260 which turns out to be a major bear market resistance. One can initiate long position at these levels, maintain stop loss of around Rs 1,158 which again turns out to be the 200 DMA and play for a pullback. We believe that this is a mere retracement in HDFC, so there is a strong case for a rally."
Tata Motors
"In Tata Motors, we have seen a breakout from a falling wedge pattern and that transforms into a price target of Rs 547. Apart from that even on technical charts we have seen strong reversal near the 200 DMA which falls in the zone of about Rs 502 to Rs 503. So keeping Rs 502 as a stop loss, one can go long on Tata Motors for a price target of Rs 547."
Larsen & Toubro
"BSE Capital Goods Index is already going through phase of long unwinding and that is why we believe that the index has still scope of further downside of at least seven percent in the near term. So, even in case we have a good rally in Nifty, we believe this Index is likely to underperform the market."
"Two heavyweights from this Index turns out to be Bharat Heavy Electricals (BHEL) and Larsen & Toubro. L&T has been trading below 200 DMA and that is clearly a sign of weakness, so we are expecting L&T to move towards the zone of Rs 1,475-1,480. So even at current level, one can initiate short positions because major short positions has piled up between the zone of around Rs 1,640 to Rs 1,650," he said.
"One can maintain the short positions with a stop loss of Rs 1,650."
Disclosure: Analyst has recommended the strategies to his clients but has no personal holdings.
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