In an interview to CNBC-TV18, Vishal Malkan of malkansview.com 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 Vishal Malkan's interview with CNBC-TV18:
Jain Irrigation Systems
The investors should hang in Jain Irrigation Systems because in the last few days we have seen some consolidation patterns on this stock, bottoming out pattern and plus today’s move have confirmed that the bottom is formed and we are looking for some more upside. A target of around Rs 74-75 would be a good target to exit if one gets it in the next few trading sessions.
Tata Coffee
If you see the chart of Tata Coffee in the last one-and-a-half year, it’s broadly trading between tide range of Rs 85 and Rs 105. I would suggest that once the stock gets out of this mode then the investor should trade otherwise it is caught up into a range which can go on for another few months. So avoid right now at this price and look for a breakout above Rs 105-110 then a sharp move upwards of Rs 140-150 can be seen. Till then the investor can avoid this stock and look at some other momentum stocks which are buzzing right now.
GVK Power
There is something which is forming, bottom formation have been there on the cards on all power stocks be it GVK Power & Infrastructure, Adani Power, Reliance Power. So, I guess something is coming up in the next three-six months on the power sector and definitely hold GVK Power and see good returns around Rs 14-15 in the next six-eight months. So, definitely hold on this stock at these levels.
Asian Paints
Asian Paints has been a good performer in the last year but in the last two-three months it has been underperforming and we have seen some correction to levels of around Rs 740. We can put a strict stoploss of around Rs 745, which is a good support. If that breaks then we can see some crack in the stock. Therefore, I would recommend holding on the stock with a stoploss of Rs 745 and at higher levels we can see targets of around Rs 850 to Rs 860 if the numbers are positively surprising. It is a trading call, so Rs 745 is the stoploss.
Gati
Gati has a better potential with a good risk reward ration. It has corrected well in the last three-four months and it has come to a very important support of Rs 190 levels. So that is a very good entry at this stock with a very small stoploss and for a reward of around Rs 300 would be the potential target in the next 3-4 months.
Indian Overseas Bank
In Indian Overseas Bank the bottom is in place and currently the stock is trading at around Rs 40 levels or Rs 42 levels which is a very strong support, so definitely a hold on this stock. All PSU bank stocks which have been hammered in the last few months, I see some bottoming formation in all of them and the worst is over and the next rally in banking sector would be led by PSU bank, so definitely a hold to this stock at these levels.
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