Accumulate Bajaj Finance, may test Rs 1155-1175: Hemant Thukral

Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money told CNBC-TV18, "Two main reasons for picking up or choosing Bajaj Finance. One, all the non-banking finance companies (NBFC) have started seeing some buying coming back in whether it is Shriram Transport Finance Corporation; for that matter, in Bharat Financial Inclusion, on Friday we saw a huge surge in volumes. But both of them have seen that happening on short-covering whereas Bajaj Finance, we have seen an accumulation of open interest happening towards the long side. So, in the last one week, total 8 percent a accumulation has happened.""And if you see the technical levels of Bajaj Finance also it has been forming a very strong bottom now at Rs 1,095-1,100. That band, every time it tests, it has tried to rebound from that zone. So, we feel that Bajaj Finance should be accumulated and with a stoploss of Rs 1,095 which is a strong bottom and we expect it to now move towards that Rs 1,155-1,175 zone and a good appreciation is expected in next 2-3 trading sessions. So, within the NBFC space, Bajaj Finance is a good bet for the traders for the next 2-3 trading sessions," he added."Another midcap stock where we have seen accumulation of open interest happening, Godrej Industries is not a stock which you will see suddenly open interest adding up of 20-30 percent in a day. This is again a stock which is accumulated over time and we have seen in last one week, both delivery volumes and open interest in Futures has been moving up.""It is a buying from both cash and Futures and Options (F&O) side; 6 percent open interest has been added up throughout last 4-5 trading sessions put together. So, good accumulation and technically stock has now crossed Rs 426 on Friday. From the last 7-8 trading sessions, Rs 425 was acting as an upside barrier which has been crossed. Now that will act as a support.""So what we feel is that immediate short-term we will see Rs 445-455 as a target. But the stoploss should be Rs 426, the level that it has managed to pierce on Friday. So, again a good long midcap trade for the next 2-3 trading sessions," he said.