Watch the interview of Ashish Chaturmohta of Fortune Equity Broker with Anuj Singhal & Ekta Batra on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.
Below is the verbatim transcript of Ashish Chaturmohta's interview with CNBC-TV18.
Markets are in a very sideways trend. It will be in a consolidation phase between 7,800-7,940. Ideally stocks are going to be in a very specific range and that is why we are liking stocks in pharmaceuticals and IT space. For example in the auto space we are witnessing a very strong build in Tata Motors (DVR) and Bajaj Auto. Even Maruti Suzuki India is one stock where on dips a lot of long interest is been seen.
In the auto space Bajaj Auto and Tata Motor DVR are the two stocks where we expect a strong upside from current levels. As far as Bajaj Auto is concerned this stock has a potential to cross in almost Rs 2,340-2,400 kind of levels. At current levels we are recommending long positions with a stoploss below Rs 2,220 levels.
As far as Tata Motors DVR is concerned this stock is trading at its all time high. It has a very reasonable support around Rs 340-345 levels on a positional side. With the kind of build up we are witnessing in this stock, there is a possibility that this stock can cross Rs 394-400 mark in next one or two weeks.
In the IT space we like Tata Consultancy Services (TCS) and Hexaware Technologies. Both these stocks have seen a very strong build up positions. As far as TCS is concerned at around Rs 2,400-2,550, we have witnessed almost 8-10 percent addition in terms of open interest build up. The stock has seen very strong volume participation on yesterday’s trade which is clearly indicating that lot of short traders are stuck into the stock. Looking into the pattern and the kind of build up, we expect this stock to cross Rs 2,650-2,670 levels in next couple of trading sessions. On downside Rs 2,500 should act as a strong support. Keeping Rs 2,500 as a stoploss one can initiate a long position in TCS at current level.
Hexaware Technologies formed a major double bottom formation around Rs 145-150 levels and has given a major breakout of weekly charts above Rs 160 levels. Even in the last three to four trading sessions we have seen a consistent build up of positions. So this stock has a potential to cross its all time high which is around Rs 180 odd levels. In short term we are expecting a target of Rs 174 and on downside Rs 156 should be kept as a trading stoploss.
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