2 stocks you can buy on Monday: Gaurav Bissa, LKP Securities

Talking to ET Now, Gaurav Bissa, LKP Securities, says betting on Axis Bank and Jain Irrigation.

Edited excerpts:

ET Now: What is the word on Nifty after hitting a fresh high? Do you think that is open room for some more upside or would you still be a little watchful considering it has been a very laboured move to 10,000 and 10,000 beyond?

Gaurav Bissa: We were quite bullish when Nifty was around 9850 and more so in the Bank Nifty which we see could have enough traction and can move 400-500 points. So, we have seen that happening. Now that Nifty has made a new high, Bank Nifty is yet to cross the previous high level. There has been additions but we are not seeing aggressive positions getting built. A significant unwinding happened in 10,200-10,300 call options. 10,300 call option would have seen significant short covering. It would have meant that people are now a little worried and Nifty might go towards those levels.

I am not saying that Nifty will see a huge correction but some sort of consolidation can follow. We need to wait for a day or two. If Nifty sustains 10,200 for next couple of days, then yes there is a possibility of another 150 points by Diwali or one or two days after Diwali. Otherwise, the consolidation would continue for the major part of next month.

ET Now: What will be your stocks strategies on Monday morning?

Gaurav Bissa: The first recommendation would be a buy on Axis Bank. We have seen the stock coming out of the multi-month channel. It has given a breakout and good amount of long positions are also getting built. One can have stop loss at Rs 520-550.

The second recommendation would be a buy on Jain Irrigation. It has seen a significant correction from Rs 104-105 levels all the way towards Rs 92-93. With the stop loss at Rs 90, one can buy Jain Irrigation for targets of Rs 105.