Stocks to buy: Two stock ideas for Monday’s session

wafi jr

There are a plethora of opportunities in the auto ancillary space. And that is where, I believe, traders can probably try and play on the momentum part, said Kunal Bothra, an independent market expert. What’s looking interesting in the broader market space? Auto-ancillary stocks have been doing well, do you […]

There are a plethora of opportunities in the auto ancillary space. And that is where, I believe, traders can probably try and play on the momentum part, said Kunal Bothra, an independent market expert.

What’s looking interesting in the broader market space? Auto-ancillary stocks have been doing well, do you see further traction in this space?
Absolutely. I still believe that the first and the primary indicator of the market rally was the auto pack. Now, the largecap auto stocks they have done exceptionally well. Many of them are going through a breather but this is just the part and parcel of how price action behaves. The second wave of the rally is getting shifted to the auto ancillary space. The price performance of Apollo Tyres and Balkrishna Industries has been stellar. Apollo Tyres has emerged lately as a potential candidate for a breakout. Post its results, the stock broke Rs 140-138 mark which was also its 200-day moving average. It has pulled up other stocks too such as JK Tyres, Ceat as well as MRF.

There are a plethora of opportunities in the auto ancillary space. And that is where, I believe, traders can probably try and play on the momentum part. You do not need to go contra into the stocks which have been going down just expecting that at some point in time the selling will stop. There are still a lot of opportunities that can make you money even if the stocks are at 5{3eba3d3415becf4302d80c682b6480d7b88003de9407d8cc6f062607002b4a18}, 10{3eba3d3415becf4302d80c682b6480d7b88003de9407d8cc6f062607002b4a18} highs on short term charts.

The markets are liking stocks which are in the overbought territory because of the fact that there is money flowing into these kinds of names. One should concentrate on these pockets. So, Balkrishna Industries, Apollo Tyres, Motherson Sumi and Amar Raja are the names which look fairly attractive to me on charts.

What are your stock strategies?

Concentrating on the largecap names, there are two stocks that I want to recommend. First is TCS; it has been some time that the IT stocks have taken a bit of a breather but last week we saw very good stability coming back into these names. The correction was averted and these stocks manage to come back and close almost at the highest point of the territory on Friday. So, I would expect that there should be a carry forward momentum into largecap IT stocks and hence TCS is what I would recommend as the first stock buy with the target of Rs 2,800 and stop loss at Rs 2,670. The second is HDFC Bank. That stock should continue to move up higher. It has broken fresh 52-week highs this momentum should continue for HDFC Bank in the near term. One can buy with a near term target of Rs 1,360 and stop loss could be kept at Rs 1,280.

Next Post

Tiny small business proprietors react to Joe Biden successful the presidency

WACO, Texas (KWTX) – As the environment keep on to respond to Joe Biden’s election victory, little company owners across Central Texas say they never know what a Biden presidency implies for them. Beatriz Concepcion operates for two little corporations in Waco, a person a nearby makeup retailer and the […]