Mumbai: Rajat Bose of rajatkbose.com said one can play on the long side if the markets open flatish.
"It may settle between 2,733 and 2,759 levels on the Nifty. The current market rally has long legs. One can go long if the market goes till 2,812. Once the Nifty crosses 2,859 level, most skeptics would also turn bullish.”
Bose said the initial target is 3,000 on the Nifty in December, but it can even move up further.
Here is a verbatim transcript of the exclusive interview with Rajat Bose on CNBC-TV18.
Q: Is the trade still long on the Nifty this morning?
A: Definitely. I would be playing on the long side if the Nifty is to open flattish and then some kind of downswing initially. Then I would be looking at a level of 2,759-2,733 to go long. Actually even if it were to go down further, having analysed all the indices that NSE (National Stock Exchange) offers the sectoral and other indices apart from the S&P 500, CNX S&P 500 or Nifty, Sensex and including the pivotal and actively traded stocks.
If you are doing technical and if you are not biased about belaboured fundamentals, then you are taking a long call on this market and this rally that is going on, I think it has long legs. Initial target is 3,000 Nifty in December, but it can even move up further.
So, I would be looking for an opportunity to play on the long side, if at all any dip comes and if it were to open at the same level and moves up above 2,812 again, there would be another possibility to go long and once 2,859 crosses then you will see most of the skeptics should also turn bullish.
Q: How are some of the media stocks looking on your charts - NDTV, UTV and Dish TV as well?
A: I have studied TV Today, NDTV, Zee Entertainment and TV18, all of these stocks are displaying that they have been beaten down too much and there are positive divergences on oscillator chart and moving average is suggesting strong pullback in all of these.
For instance NDTV initial target would be Rs 107, if Rs 107 to Rs 117 is crossed in this pullback rally, then it can move up even further. TV18, I have a feeling that it is heading to more than Rs 130 levels in this rally.
Zee Entertainment unless it falls below Rs 110 you will see it moving up to Rs 146 to Rs 153 levels. TV Today yesterday had a good run; today Rs 65 would be quite crucial. If it moves further up then Rs 72-73 levels could be seen in the near-term. Media particularly looks quite bullish and there is going to be strong pullback rally.
Q: What’s your sense of what to do now with the real estate pack? Unitech and DLF what would you do?
A: You can play on the long side for the pullback rally, because the Unitech chart shows that it did go down to close to about Rs 20 odd level, but the kind of volume that it has seen it has never seen in its history, so it suggests some kind of an accumulation. When this kind of a scenario emerges on the charts, I have seen in the past that the company goes for some kind of major restructuring, some package or something happens and that’s the reason why it suggests major accumulation at those levels.
So immediately I would not suggest that you get out of realty stocks although in these realty stocks people might have made 25-30 per cent from the lower levels. But possibly there would be more on the upside and since I am positive on the market, I feel that even realty would do well maybe sometime next week these stocks will show even higher levels maybe on Wednesday-Thursday around that time some profit booking could be done.
Q: One word on some of these real estate stocks and which one even from a trading perspective is looking good for higher levels?
A: The kind of accumulation that you have seen in Unitech, qualifies for a long side trade apart from that HDIL is moving beyond Rs 97 then chances are that you might actually see it going up to something like Rs 114 to Rs 119. So these two stocks you can actually consider on the upside in realty play.
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