High chances of Nifty breaking about 5450 in next 2 days: Devang Visaria

In an ET Now interaction, Devang Visaria, Chief Strategist, devangvisaria.com comments on Videocon, Rei Agro & Bharti stock, among others.

Does it seem like we can conclusively break about 5450 in the next 1 or 2 days and stay put at that?

Devang Visaria: The possibility is looking very strong given the fact that we have sustained today's gap up opening and also the fact that the world markets as well as the base metals commodity complex is also looking good enough and it is holding onto its gains which we have seen for today's session. So yes, 5450 can be taken out but you could just have a couple of days of range bound trades between 5450-5500 and once you get past 5500 which is a key level for me, then you have 200-250 point move on the upside for Nifty.

What about Videocon Industries?

Devang Visaria: Videocon as it moved today and the upside 235 should be a short term target, very close to that, possibly just Rs 8 away from it. So if you are holding the stock, you could have a trading stop loss of 224 and look for targets of 235.

From the fertiliser space, any particular stocks that you would like here?

Devang Visaria: On the fertilisers pack, we would like to be buying RCF. RCF is looking good from a medium term perspective. We are looking for targets of closer to 100 for RCF. On the downside, 82-82.5 is a strong support. So as a strategy, you could buy 50% at these levels and again if you get a dip to around 82-83.5 range, that is a good range to buy another 50%. 95 to 100 is a decent target for RCF on the upside.

What about Rei Agro?

Devang Visaria: Rei Agro has just become ex-rights issue today. Actually it is down by 16% what you said. So possibly it is just factoring in the ex-right price. So possibly once you get that factored in, it will just be trading flat at these levels.

Chartically, quick check on Bharti?

Devang Visaria: Bharti Airtel on the upside, 325-330 is a crucial resistance zone for the stock. On the upside if it were to get past 330, then you have a target of 355-360 in place for Bharti. Till then, you could possibly wait and watch or in case if you have a positive view, this stock is very actively traded in the options segment also. So you could just take a long position on 330 call option and given the fact that the IVs are low, investment would be also less on a 330 call. That would be a decent way to trade long on Bharti.