Havells, UltraTech and Apollo Tyres are best bets: Ashwani Gujral
'The demand is moving up, which is a good thing for a market that is going up. Chances are we will move beyond 7800 and maybe towards 8200.'
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In a chat with ET Now, Ashwani Gujral, Fund Manager at Ashwanigujral.com, shares his views on the market. Excerpts:
ET Now: Choppy as it may be two days in a row, the Nifty is doing very well at this hour. How are you approaching trade now? Also, give us an update on the trending stock recommendations, particularly IRB.
Ashwani Gujral: What appears to have happened is that the market found support at higher levels of 7600. This means that the demand is moving up, which is a good thing for a market that is going up. Chances are we will move beyond 7800 and maybe towards 8200.
Thus, the indication from this day appears to be that 7600 is that higher support level which is holding itself out even in the face of news which is more or less expected. The key thing is that CNX IT has held on to about 10,400 and if that is able to make further progress, chances are that Nifty could move up albeit a bit slowly, because Bank Nifty could be under performing. But overall things seemed be turning.
A lot of the cyclicals are breaking out now and giving buy signals like you saw with OMCs yesterday - a lot of infra stocks did well. For the moment, Havells is a buy with a stop of 1170, target of 1250; UltraTech is a buy with a stop of 2500, target of 2650; Apollo Tyres is a buy with a stop of 178, target of 192.
When it comes to trending stocks, we have IRB which is probably leading the infra pack. This is the only infra stock which is up 22 per cent in the last couple of months while other stocks have corrected. Hence, it is making a fresh move, possibly heading towards 300.
As far as JK Lakshmi is concerned, that is a play on cement because the smaller cement stocks as well as the large cap cement stocks do well. Hence, even there we are expecting 325-330. These are two spaces that people should look for and possibly you will have more gains by the time 320 comes in. In fact on the Nifty also, there is a buy signal above 7720. That also needs to be taken on board.
ET Now: Choppy as it may be two days in a row, the Nifty is doing very well at this hour. How are you approaching trade now? Also, give us an update on the trending stock recommendations, particularly IRB.
Ashwani Gujral: What appears to have happened is that the market found support at higher levels of 7600. This means that the demand is moving up, which is a good thing for a market that is going up. Chances are we will move beyond 7800 and maybe towards 8200.
Thus, the indication from this day appears to be that 7600 is that higher support level which is holding itself out even in the face of news which is more or less expected. The key thing is that CNX IT has held on to about 10,400 and if that is able to make further progress, chances are that Nifty could move up albeit a bit slowly, because Bank Nifty could be under performing. But overall things seemed be turning.
A lot of the cyclicals are breaking out now and giving buy signals like you saw with OMCs yesterday - a lot of infra stocks did well. For the moment, Havells is a buy with a stop of 1170, target of 1250; UltraTech is a buy with a stop of 2500, target of 2650; Apollo Tyres is a buy with a stop of 178, target of 192.
When it comes to trending stocks, we have IRB which is probably leading the infra pack. This is the only infra stock which is up 22 per cent in the last couple of months while other stocks have corrected. Hence, it is making a fresh move, possibly heading towards 300.
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As far as JK Lakshmi is concerned, that is a play on cement because the smaller cement stocks as well as the large cap cement stocks do well. Hence, even there we are expecting 325-330. These are two spaces that people should look for and possibly you will have more gains by the time 320 comes in. In fact on the Nifty also, there is a buy signal above 7720. That also needs to be taken on board.
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