Mehul Kothari of Anand Rathi while talking to Moneycontrol on the condition and direction of the market said that on the market we advise traders to be very cautious. Bet on select stocks very carefully while making purchases. At this time, profit collection at higher lows will be better.
He further said in this conversation that last week there was full action in the domestic market. After the correction in the US markets, both the bulls and the bears showed their strength. The hawkish approach of the US Fed did upset the market a bit, but the profit recovery in our markets was necessary and already predictable. Overall, the expectations in our markets were over-extended. Meanwhile, the fall in Dow Jones triggered profit-taking in the domestic market as well.
Talking on the market, he said that thankfully, the second wave of Covid seems to be stopping and the process of unlocking has started across the country. But we need not be careless about it. The possibility of Corona’s third wave is also being talked about. In view of which the market is still under the shadow of this epidemic. Due to which we may see volatility in the market for a few more months.
In this situation, if the market falls by 10 percent, then it will be good for the market. There is no need to be worried about this. However, if Nifty goes below 14,000 then it will be a matter of concern for the market. In the short term, strong support is seen for Nifty at 15,400 and 15,000 levels.
Short Term Investment Advice by Mehul Kothari
Aurobindo Pharma: This stock has a buy call with a stop loss of Rs 915 with a target of Rs 1020. Upside of 7 per cent can be seen in this stock in 3-4 weeks. Kothari says that in view of the huge volatility in the market, it is advisable to invest in defensive and consumption related stocks at this time. In view of this, Aurobindo Pharma seems to be a better option for the short term.
Sun Pharma– This stock has a buy call with a stop loss of Rs 645 with a target of Rs 705. Soon an upside of 5 percent can be seen in this. Mehul says that in May 2021, Sun Pharma has given a major break out above Rs 650 and it is once again seen around this level. The risk-to-reward ratio of this stock also looks very good for short term purchase.
UBL-This stock has buy call on Mehul with stop loss of Rs 300 and target of Rs 1480. Up to 8.42 percent upside can be seen in this stock in 2-3 weeks.
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