Watch the interview of Mithil Pradhan, Violet Arc Global Managers with Ekta Batra & Anuj Singhal on CNBC-TV18, in which he shared his readings and outlook on specific stocks.
Below is the verbatim transcript of Mithil Pradhan's interview with CNBC-TV18.
Private banking stocks are doing preferably well even though Nifty is consolidating at this point of time, even Bank Nifty is consolidating. Axis Bank is moving into an uptrending channel for the last three-four months and about two weeks back there was a breakdown below this particular channel but this breakdown could not move below the trend decided level of Axis Bank which is around Rs 374-384. Yesterday there is a breakout which is seen from a consolidation putting Axis Bank again into the uptrending channel.
On the daily chart and the weekly chart, Axis Bank has moved above the 20 day moving average both weekly and daily, so it gives me more confidence that momentum is now catching up on the upside. Ideally I would keep a stoploss below the zone of Rs 374-384; aggressively I can keep a stoploss below Rs 380. I am at least looking at Rs 434 as a primary target on the upside on this counter.
Apollo Tyres belongs to the sector of auto stocks and I have been bullish on auto as a sector overall. The stock has given a breakout above a cup and handle pattern. A cup and handle pattern is a typical pattern which occurs during bull markets and it is a very reliable pattern. The breakout has happened yesterday. This morning it again fell below the pattern but has conquered it. So it gives me more confidence towards the stock.
I am looking at Rs 240-245 kind of an area as a primary target but if you look at the depth of the pattern of Apollo Tyres then it is about 60-70 points which would say that it can go to as high as Rs 280-290 levels. So this is my prime recommendation today.
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