Markets can go down further to 4900-4950: Sandeep Wagle

In an interview with ET Now, Sandeep Wagle, Founder & MD, APTART Technical Advisory Services, talks about the market and shares his views on various stocks. Excerpts:

ET Now: After the way we closed on Friday, what does it look on the charts going forward and how dented is the trader sentiment?

Sandeep Wagle: We are on the verge of breaking the crucial 5500 support level and once that is broken, the next support is at 5400 which may not be broken in a hurry. It may take a couple of days but there is a good chance that markets may break that.

In that scenario, we can go down to 5180-5200 and that would the next target. It is quite possible that markets can go down further to 4900-4950. However, as of now I would restrict myself to 5200-5180 and the banking space would lead the pack.

ET Now: What is your take on Hero MotoCorp?

Sandeep Wagle: The way Hero MotoCorp has moved up, we have been talking of a target of 2150 and we maintain that. At such times, there could be sideways move, there could be a possible 50-70 points correction. However, the target of 2150 can come over the next few months. On every decline, I would buy Hero MotoCorp. The stock has not fallen substantially. 1950 to 1900 is the ideal level where I am more comfortable buying this stock for a target of 2150 for the next 6-8 weeks.

ET Now: How much more weakness for Titan is on the charts?

Sandeep Wagle: It looks like a fall towards 215-210 from a current level of 240. The stock can be sold at the current level or on a bit of an up move towards 250 with a stop loss of around 258-260. Look towards 210-215, which is a clear 10% downside move from the current levels.

ET Now: What would you do with names like Tata Motors and Maruti?

Sandeep Wagle: I was bullish on Tata Motors. However, with the sell off that we witnessed yesterday, other than Hero MotoCorp, I do not see strength in any stock but Tata Motors can be bought on a correction. Tata Motors can come down to 295 from 315 and I would use that to buy. Still maintain the positive view on Tata Motors. Maruti is not a positive stock. I would choose between Tata Motors and Hero MotoCorp.

ET Now: What is on your watch list?

Sandeep Wagle: Sell Kotak Bank with a stop loss of 640 and a target of 610. Sell Coal India with a stop loss of 266 and a target of 248.