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Check out: Top chart picks by market experts

In an interview to CNBC-TV18, Kunal Bothra of LKP Securities shared his readings and outlook on specific stocks and sector & Hemant Rustagi of Wiseinvest Advisors answered few personal finance queries.

October 12, 2015 / 15:42 IST
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In an interview to CNBC-TV18, Kunal Bothra of LKP Securities shared his readings and outlook on specific stocks and sector & Hemant Rustagi of Wiseinvest Advisors answered few personal finance queries.

Below is the verbatim transcript of Kunal Bothra's interview with CNBC-TV18:NTPCLooking at the chart pattern of NTPC over the last one and half odd month, the stock seems to be finding some sort of stability around this Rs 120 odd mark. I think the idle strategy over here should that you need to hold onto the stock, but you can try and average around Rs 125. On short-term basis, you can look for a target of Rs 140 because which is where I believe that this rally can actually see some bit of strong resistance. So, you can take out the profits at Rs 140 levels. Book part profit, and then once the longer-term charts unfold into a better picture, then you can hold on to it from a longer-term perspective.IDBI Bank and Coal India I In the last month and a half in IDBI Bank we have seen good recovery in this stock is probably something very good because the volumes have spiked up, the stock is trading above some medium-term moving averages as well. So, my sense, if the investors have a time-horizon probably from one to two years or slightly even more longer than that, then the idle strategy should be that if the stock touches Rs 75 or this range of Rs 70-75, try and average out further, because I sense that this rally which you saw over the last one month has probably more legs over the next couple of months which can actually unfold. If you can hold on for at least six months or one year time period, I expect that if this bigger rally unfolds, the stock can actually hit triple digit level as well. In terms of Coal India, I think if the investment is from a shorter term horizon, this level of Rs 330 odd which the stock is currently trading, is a decent enough level to take out profits. But if you are looking to hold on to it from a longer term perspective, I sense that over the next couple of months, there could be more volatility which can actually happen in the stock. There could be a chance that you can see even a break of Rs 300 on Coal India over the next couple of months. So, if you are ready for that, the kind of volatility, and if you can hold on for a couple of years, this is again a very good stock to hold on to. But again, as I said, if your time frame is shorter term, and if you are looking to trade, then these levels are very good levels to take out profits from Coal India.VedantaIn Vedanta it is very difficult call at this point of time especially because given the circumstances of where the stock was trading a couple of weeks back and where it is now. This rally seems to be because the tendency for the metal stocks is to try and show some very aggressive momentum in a very short span of time, very limited span of time. That is the nature of this stock as well. So, look at it from a trading perspective, and then keep on being more punctual with your trading approach, that would be a better approach at this point of time because the longer term charts, they take at least six months or eight months to really show signs of bottoming out because the longer term trend since we have seen in the last one and half year, most of these metal names is still bearish to say so. I believe that the approach should be that you try and book out profits from your trading positions. At least do partial profits at levels of Rs 120-125 where there seems to be a good amount of resistance for Vedanta. That seems to be a good zone where you can take out profits. Look for further corrections, if it comes down to below Rs 100 again, then you could look to add it back from a trading portfolio per se. But at this point of time, taking a bigger call or one year call would be very difficult on the same.Ashok Leyland and Escorts I do not see any concern especially for Ashok Leyland. The last two years approximately has more or less been fantabulous for the stock. Those price level of Rs 10-11 in 2013, the stock has touched almost Rs 100 a couple of months back. So, the longer term trend is intact. There may be chance that the stock may actually go into a period of consolidation. If there are any corrections in the stock, say level o Rs 90 or Rs 85, those could be good zones to try and accumulate further. If the investor holds on for say a period of one year or two years at least, my timeframe is exactly 18 months, I expect the stock to reach levels of Rs 120 which is where I think it is a good enough zone to take out some profits from a longer-term investor perspective, but at this point of time, it makes prudent sense to rather remain invested on the stock. In terms of Escorts, if the horizon is one to two years or slightly more, even these ranges of Rs 150-160 is a good enough range to try and hold on to your investment. I believe that in the next one to two years, if the longer term charts play out, the way it has been shaping up, I expect the stock to hit levels of Rs 180-200 over the next one year or so. So, I would probably advice the investors to stay invested in both these names, Ashok Leyland as well as Escorts.

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first published: Oct 12, 2015 03:16 pm

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