Tips for Trade: Stocks to buy in this weak market
Check out the frontline and mid-cap stocks that can be bought at the current levels with Kunal Bothra, technical analyst, LKP Securities
Smartinvestor : The markets have slipped yet again today on the back of RBI's latest moves / statements. What are the key trends that you are picking up? What should investors do at the current levels?
Kunal Bothra : The markets are putting forward a statement over here that the Volatility would continue to be higher, especially the gap opening volatility. However, we have broken some strong set of resistances on our way up in the last few days. So, going by that the medium term trend is up as long as we are holding up the 200 DMA. I think, a safe strategy to be to trade on long side expecting an intraday bounce on the indices.
Smartinvestor : Can you suggest a few stocks where one can take a long position at the current levels?
Kunal Bothra : Biocon looks like setting for a breakout, remember that this stock has been trading sideways for almost a year now, so the breakout above 300 could be very crucial. I think with a strict stop loss of 290 levels one could expect a target of 320-330 in the near term.
Kunal Bothra : Escorts has been one of our top picks, and we continue to remain bullish on it for a medium term(2-3 months) target of 105-110
Smartinvestor : What about the possible longs in the large-cap space?