Bank Nifty should continue to outperform the Nifty: Devang Visaria

ET Now spoke to Devang Visaria, Chief Strategist, devangvisaria.com, on his view on the Nifty.

What about the charts because time and again we have made that attempt at 5400 but haven't really conclusively pass that and built up with those levels?

I think the Nifty is just consolidating and you are not seeing much of action on Nifty. I think at the higher levels 5450-5500 is likely to be a very, very strong resistance for the Nifty and instead of focusing on the Nifty traders could possibly look at the Bank Nifty. Even last Monday we had just discussed the same idea and I think Bank Nifty should continue to outperform the Nifty.

On the charts how are you viewing some of these hotel counters, EIH in particular?

EIH has given a very strong breakout today. I think it is just trading about its key moving averages. It has really picked up sufficient momentum to retest its 52-week high of possibly around 146-150 that should be a good target for EIH. In fact at current levels and again on declines to 125-126 you could accumulate the stock and with a stop loss of just below 122 we would say that the first target is around 146-150 followed by possibly 170 odd levels.

Does it seem like this momentum that we are witnessing on Rel Comm can be sustained at 190 plus levels?

Yes, I think it has good momentum possibly on the upside we are looking for a retest of the recent highs of 204-205 levels and with the stop just below 187 you could go ahead and buy RComm. It's a good risk reward ratio to trade on the long side. Also the stock is very actively traded in the option segment so possibly you could buy the 190 calls and sell the 210 calls and make a bull spread position so that where you are minimising your losses and trying to maximise your profit in the target range of 205 or so.

What would you with the stock like this now on Petronet LNG Rs84 is a good buy price or probably a good exit price?

I think we are possibly looking for a breakout above the 52-week high of 87 or so and once you get that breakout we are looking for a target of closer to 100-110. The stock has been in the throws of a consolidation for almost the last 5 to 6 months and has failed to get passed 87 on the upside but on the downside also it gets very strong support at around 75-74 levels. So I think this time around possibly it has built up lot of momentum and once you get a breakout above 87 with the Rs3 or Rs4 stop loss you could possibly have a long trader going on this one for targets of 100-105 as a trading call.