Watch the interview of Mithil Pradhan of Violet Arc Global Managers with Ekta Batra & Anuj Singhal on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.
Below is the verbatim transcript of Mithil Pradhan's interview with CNBC-TV18.
IFCI is a weak stock. Today it has given a breakdown below the double bottom of Rs 37.60-37.65. There was a lot of consolidation between Rs 37.60 on the top around Rs 40 odd level. This breakdown now opens up downside targets. It can go easily to about Rs 34-35 but then there is no major support till about Rs 32-33. So this will be a short because breakdown has happened today itself.
Market is falling and I think it has not hit a bottom right now. It is a very safe strategy to be in defensives specially ITC because the stock has given a breakout above the Rs 380. This level has been a multiple top, there has been many tops at this particular level. All these stocks are part of a larger ascending triangle pattern which has been creating since last 15 months.
So, this breakout is actually a very important breakout in terms of ITC and it already started outperforming the market over the last one week. I am expecting at least Rs 460 on the upside or towards Rs 480 as well because of the depth of the pattern itself is about Rs 100. So you can keep a stoploss of somewhere around Rs 360.
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