Has the IT earnings spoiled the momentum for the markets over a bit of a medium term or do you think this is just a one-day move?
Well a market just requires a reason to correct and after the nine consecutive trading sessions of positive closing, it is probably seeing the IT results as a reason to correct.
So talking about Nifty also since these corrections are coming in does not mean that the sentiment changes. However, these retracements should be considered as buying opportunities. Probably right now IT is a weaker section but the other sectors like auto space, metal space or banking space are good attractive levels and invite buying opportunities talking about stock specific ideas.
Amid this fall in market that we are seeing, what are your top picks currently?
Well, I have two top picks. So the first one I would like to talk about is RPG Life. RPG Life today is already up by around 4% odd. However, technically speaking it has given a breakout from inverted head and shoulder pattern. So although the breakout was at around 755 levels and the stock price is currently trading at around 779 to 780, so I suggest to buy at 50% at current levels also. Technically speaking, there has been a good increase in volume also along with the breakout and the stock price is attempting to move above two multiple moving averages that is a 200 as well as 50. So the overall sentiment or the trend is changing in the stock. So it is a good buy. So add on, buy at around these current levels 50%, add on more at 766 levels, maintain a stop loss below 725. And initially my target was closer to 793. However, I would like to revise it to closer to 800 levels.
Since we have you with us a word on the IT sector as well. Is there any name that looks strong from a chart pattern or would you recommend a buy with the risk reward is favourable now?
As of right now, I would suggest to avoid and wait for the stock prices to stabilise because currently most of the IT stocks have been taking a hit. So rather the stock price is required to consolidate and show some kind of a sideward move before getting into it.