Kunal Bothra’s Market Outlook and Two Stock Picks for Next Week

Friday’s move compliments data points on the indices. We also saw a mix of short coverage and long build, so there were so many large cap names that looked more formidable, like Dr. Reddy making a comeback, the pharma stocks generally making a comeback and that other industry doing extremely well, said
Kunal Bothra from
kunalbothra.co.in
in an interview with ETNow. fragments:

What are you looking at in terms of the Nifty’s charts going forward? And how can we also look at the coming week?

After Friday’s move, we can say that the bulls can finally breathe a sigh of relief that a rally has begun for the indices. The start of the week was extremely scorching for the markets, but the end was something I think everyone would want to take note of because of the way our markets took shape without what’s happening around the world.



So in the last month and a half, we’ve been so dependent on what’s happening around the world, especially the US indices. But over the past two days, our market performance has been completely different and divergent on a positive side, of course, with regard to what’s happening on the US indices, so that was a big positive for our markets, potentially breaking the chain of trying to follow what’s happening around the world and we could probably move in a positive direction now.

Now there are so many data points to discuss, but I’d probably narrow it down to just a very important one, as on Thursday after the weekly expiration we’d seen a massive amount of call buys happen at the 17000 strike. I think Friday’s move is kind of a compliment to that kind of data on the indices. We also saw a mix of short coverage and long build, so there were so many large cap names that looked more formidable, like Reliance, Dr Reddy making a comeback, the pharma stocks generally making a comeback and such other sectors that it did exceptionally well.

So when you deal with such a scenario where both long build and short coverage go hand in hand, the market breadth looks pretty strong and the options data is trying to compliment it too, it’s a perfect and a classic setup for a stronger recovery in the indices. So I would expect that if there isn’t a major setback around the world we should be trading much higher next week than where we left off on Friday and I think we may need to go back to at least 16,600 if not more on the Handy 50.

What are your top picks you’re looking at?

So there are two buy calls that I would suggest at this point; the first is a buy on

, very interesting chart, the stock is one of the most formidable midcaps or big chemical names looks attractive. The stock confirms a breakout of a cup and is holding some sort of pattern, Rs 1040 as that target, stop loss Rs 960 for Tata Chemicals. And from the fertilizer package a non F&O stock RCF, I have been discussing this stock since last week that how the stock has shown brilliant kind of chart patterns on I think Rs 99 or 100 odd levels RCF also looks very attractive in the charts and I would expect to see much stronger follow-up price action for the stock in the coming weeks. So a positional buy on RCF, Rs 120 as target, stop loss at Rs 92.

Leave a Comment