Action recommendations: Kunal Bothra’s 2 action ideas for next week

The Nifty has gone from 15800 last week to 16700, from now on should we expect 17000 or are we already too greedy?

I believe we are not getting as greedy as the markets have been because data points around the world are entering favorable areas for our markets.

We saw two textures in the market this week; the first half of this week was driven more by movements in the index where we saw the second tier of stocks perform well.

For example, non-traditional names like the Nifty IT Index managed to see a good rally. Additionally, PSU banking stocks outperformed private sector banks in the first half. But in the second half and specifically on Friday, we saw the return of big-cap names like HDFC, who were a little sideways or lukewarm in the first half. So these two face price action moves on the market internals suggest that we should be in for further upside. There have been sector churns, stock-specific churns within sectors as well, so a lot of positives to take away from the market this week.

And the most important aspect was one of the big resistances which was around 16600 to 16700 areas which we managed to push past.

FIIs that have changed buyers in the last two or three trading sessions are also very positive for the markets because when FII buying returns, the market picks up a lot of momentum. So assuming global markets are stable enough, we should be looking at 17,000 probably next week.

What choices do you have for next week?

I have two purchase names; the first is AB Capital. The stock performed reasonably well on Thursday and Friday even though price trends are just coming out of a correction phase.

I think the potential is much higher for the short-term action, so Rs 110 could be a target to watch next week and the stop loss could be held at Rs 100.

Angel One is one of the stocks that had done reasonably well in the second half of 2021, then the stock fell into a corrective phase more or less in line with the midcaps theme.

But now it is making a comeback. The stock topped the 200-day moving averages and also saw a strong comeback in terms of volumes. So I expect this stock to do quite well. Rs 1500 can be kept as a short-term target and the stop loss can be kept at Rs 1400.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)

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