Rajat Bose of rajatbose.com says Nifty touching the level of 8365 will be the first test for a bull, adding “if this is successful than we might actually see the most critical range of the day from 8362 to 8385”. After this a sustainable recovery is expected. He says if it were to really move beyond 8400 then 8409-8420 would be the final resistance.
He has chosen to sell Tata Steel since it is in a clear downtrend. It may not recover even if market was to turn positive. He has a buy on Century Textiles and expects it to move to Rs 724, if bought on dips or current levels.
He is bullish on Bank Nifty and recommends buying BHEL with a target price of Rs 275- Rs 286.
Below is the verbatim transcript of Rajat Bose's interview with CNBC-TV18
Sun Pharma Advanced Research Company
Yesterday, Sun Pharma Advanced Research Company (SPARC) showed considerable buoyancy and it is looking good and when it acquires momentum, you see very strong movement on the upside. So I would put a stop loss below Rs 409 because this shows large volatility but at the same time I am expecting levels of Rs 438-443 and Rs 449. After a base formation this breakout is taking place.
Chances are that you might even see it going beyond Rs 449 but suffice it to say that for now, the maximum target of Rs 449 would do. It could be met during the day or it could be met by Monday.
Tata Steel
The moving average in Tata Steel is another trend following indicator showing that this is again a downtrend, The stock has a major support area between Rs 273 and Rs 270. So I have kept targets of Rs 276 and Rs 273.25, put a stop loss above Rs 284.50. Yesterday it closed at Rs 280, so there you have a trade at least up to Rs 273 before it gets some kind of a floor for a bounce back. Metals are clearly negative. Hence Tata Steel even if the market were to turn positive, it may not recover so much and that is why the sell call.
Century Textiles and Industries
Century Textiles and Industries is looking pretty good. If you could buy it on dips or if you can buy at current level, you can expect it to move up to something like Rs 724 but the first target would be Rs 718. Put a stop loss below Rs 697. The 13-day moving average seems to be there at Rs 697, so instead of Rs 698 put a stop loss below Rs 697. Yesterday the kind of momentum it showed, there is a possibility that you will see an upsurge today.
Bharat Heavy Electricals
The charts are suggesting that Bharat Heavy Electricals (BHEL) might move up. Yesterday it has shown larger volume. In fact, for the last four days consecutively, higher volumes are being clocked and it's short-term moving averages especially the 13-day moving average (DMA) is supporting it. Yesterday's low was on the 13-day moving average, possibly we are headed for a test of levels of Rs 275 and it could even go beyond that. So put a stop loss, it depends on the comfort level.
If you put a stop loss below Rs 258 or so and ride the rally all the way, you can go up to Rs 275 or so, that is possible. So you can take it as a day trade or as a positional trade or a swing trade, at least expect Rs 275, the stock looks very good.
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