Jaiprakash Associates can reach Rs 85-86: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, Technical Analyst, miteshthacker.com, talks about his stock picks. Excerpts:

ET Now: Since the broader theme for cement is strong and JP is India’s third largest cement company, is there merit in buying JP Associates?

Mitesh Thacker: I would partially agree with that in the sense that the overall technical structure for JP has not become very bad. As long as it remains above 75, there is a good chance that we might approach 85-86 on the upside. Possibly look for a breakout but just wait it out. The markets are pretty volatile. So if somebody wants to take it, do not be aggressive a buyer, buy into small quantities and that is what we have been doing.

If you are looking at long calls, specific stocks like Bata or probably even Unilever or ITC or some from the cement pack which includes Ambuja and India Cement look good. Minor buying should be done and these are the stocks which are clearly weathering the storm much better than rest of the pack and are showing good uptrend. So JP will fall into that category but I will keep a watch also on the stop loss levels of just below 75.