3 top trading ideas for Monday morning: Ashish Chaturmohta

In a chat with ET Now, Ashish Chaturmohta, Technical Expert, says Havells, CESC and Bharat Electronics are the top three tradng ideas for Monday.

Edited excerpts:


Let us talk about Infosys, back above Rs 900. Do you think there is more headroom for the stock to go up until the buyback arbitrage gets played out?

Since this buyback is there, it will give stability to the stock but if you look at the volumes which we have observed on the short side of the stock, I was seeing the data, the stock has seen a build up from almost Rs 2.8 crore to almost Rs 4.5-4.6 crore in terms of open interest addition clearly on the short side.

So, definitely because of this news there can be some support around this Rs 880-890 mark but on the upside we thing think that the stock might face a very stiff resistance around 950-960 zone.

There can be an uptick of maybe 4-5% from current levels but around 940-950 we might see a lot of resistance and selling pressure coming into the stock.

Is there a trend here in place in retail sector stocks and do you sense some of these stocks are good to buy even now after the current up move?

Selectively yes because definitely the stocks have seen a very strong upside in the last couple of weeks and but still there are no signs of any weakness which is very-very important so there can be a price correction which might happen in these stocks but definitely in terms of any weakness we do not see.

In fact, a lot of stocks are seeing a continuous higher top higher bottom formation. A stock like Trent, in the last three trading sessions we have seen a very increased volume activity in the stock and you know this stock has really not seen a very strong uptick in the last couple of months so I think this is one stock where we might see another 15-20% upside from current levels.

Trent is our top pick in the entire retail space. Again Future Retail is one stock which is trading at its all time high but looks very-very interesting. I think this stock has formed a very strong base around Rs 450-460 zone.

Any dip towards Rs 480-490 would be a great opportunity to enter into Future Retail with a stop below 460. I think eventually the stock is poised for a move towards Rs 590-600 in the next two to three months.

What your some trading ideas for Monday morning?

Havells is one stock which is looking very interesting. The stock has seen a very strong open interest activity today so I think this is one stock which can see upside till Rs 510 levels. One can initiate a long keeping a stop below Rs 478.

The other pick would be a long idea on CESC. Again, strong volume with a very strong technical breakout about this Rs 950 zone so one initiate a long, keep a stop below 940 and I think the stock has a potential to cross its previous all time high and can target somewhere around Rs 1000 odd levels.

And third pick would be Bharat Electronics. Again, the stock trading at its all time high but with very strong delivery volumes so I think this is one stock where we can see upside till Rs 200 odd levels. One can initiate a long, keeping a stop below Rs 185.