Bank Nifty seems to be coming out of a slumber. There was a bit of a breakout. But today again, the market has tempered a bit. What is your view at the index level right now?
Vishal Malkan: I will first go with the Nifty part, which has given a good breakout above that 22,200 in the last few trading sessions, sustaining above that, holding on to those levels. It looks like we can have further upside up to 22,700 odd. But as far as Bank Nifty is concerned, there is a slight kind of resistance which is not working out well, which is around 48,000, which was created in the last fall when there was a gap down, there is a big resistance. Once it crosses 48,000, then only we can look for fresh highs in Bank Nifty. Apart from that, stock specific, there are a lot of ideas where we can have decent returns.
In stock specific ideas, where do you see value?
Vishal Malkan: I will go with the flavour of the week which is PSU banks which are doing well, like Canara Bank, Bank of Baroda. My favourite is PNB and it has broken above that resistance of 125; closing above that, would be a good sign and we can look at targets of Rs 135, 140 and 145 in the next few trading sessions.
Apart from that, another stock which is doing well today is AB Capital. It has managed to cross above that Rs 190 level and it is a good stock for Rs 210-220 levels in the next few trading sessions.
What are your thoughts on some of the beaten down auto companies, which have not participated? Ashok Leyland has just not gone beyond Rs 180, 185. What are your thoughts there because this entire universe of TVS, Bajaj, Hero have done pretty well. Is it time to move that side or not yet?
Vishal Malkan: We should not try to anticipate the trades. We believe in technical and once there is a breakout, then the move happens faster. Like we saw in Tata Motors, once it crossed Rs 650 levels, it touched Rs 1,000 in no time. Similarly, Ashok Leyland has that strong resistance of Rs 185. It is better to buy expensive than to buy the bargain right now at Rs 175. I will wait for a breakout around Rs 190 and then only look for a momentum right in that.
So, the completely beaten down speciality chemical space is buzzing right now. Tata Chemical, Navin Fluorine, Gujarat Fluoro, the specialty or EV chemical stocks, anything you like there? This is also beaten down. Any movement anywhere worth looking at?
Vishal Malkan: Tata Chemicals has given a great move in the last few trading sessions. But now, for buying at these levels, we need a bigger risk-reward ratio. I would wait for it to come down to Rs 1040-1045 before buying Tata Chemicals, which is looking good on daily as well as weekly charts.