Nifty should go beyond 6000 levels in 3-6 months: Sandeep Wagle

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

ET Now: What is your sense after the ticker closing in at 5700, where could the market take us?

Sandeep Wagle: It was a fabulous Friday. Normally Friday is very scary but this Friday has been fabulous. We are at a resistance but sooner or later that will be broken. The resistance is around a level of 5730. Once that is taken out, 5900-5920 would be a matter of time. A trader should wait for a 50-70 point decline or a consolidation. We cannot call it a decline after such a rally to buy in.

Another 50 points high can be used as a buying range. Keep a stop of 5550 which is 150 points lower than the current level. Look at a 5900-5930 level over the next week. As an investor, there is a chance that we may see a 100-150 point downside. However, that has to be treated as a correction and not as a fall that should be bought into. With a three to six month time horizon, we should see beyond 6000 on the Nifty.

ET Now: What are your views on aviation? Is any trade possible?

Sandeep Wagle: Not really. Jet Airways is not looking positive. Looking at the patterns that some of the other stocks in the infrastructure and banking space, I do not think one should look at aviation.

ET Now: Have you looked at any of the stocks in the midcap space?

Sandeep Wagle: A lot of stocks will move up in the next week. There should be some consolidation and we should buy into them. This is because most of them are up 8%-15%. Therefore, wait for a 2%-4% correction or a consolidation. I see them reaching much higher levels from the current levels.

ET Now: A word on some of the insurance movers because those stocks were very active on Friday's session?

Sandeep Wagle: We had a buy in Aditya Birla Nuvo in F&O and and some more upside is expected. In this space, buy AB Nuvo and at a level of 860. I would see traction up to 950-920, very comfortable buying them on declines or a bit of correction in the range of 840-830. An upmove till 920-930 can be expected.

ET Now: Do you have infrastructure in your recommendations?

Sandeep Wagle: Yes, I would go with IVRCL Infra. the stock has given a breakout. Play for an upside target of 10% to 12% from the current levels. The stop loss can be around 45.30 and a target of 51. The second is a buy on Sintex which has also given a breakout and the weekly chart is also firming up very well. Buy the stock with a stop loss of 63.50 and a target of 71.50.

ET Now: What will you do with HCL Tech and L&T or may PFC and REC?

Sandeep Wagle: PFC and REC are catching my eye in terms for the longer term. The upmove can extend till 225-230. Therefore, PFC and REC are good buys on a bit of declines. L&T and HCL Tech remain good buys. However, I do not see anything outstanding in the pattern compared to other stocks.