It was yet another intensely volatile day. For a change, we managed to close in the green with short covering helping the bulls. The Nifty closed at 4,921 up 57 points, while the Sensex shut shop at 16,587 up 247 points.
“I would not call it a bear market. People need to adjust or get used to the fact that this is not a correction of a 5 or 6 month bullish patch. But this is a correction of a four and half year old bull market, which started in May 2003 and terminated in January 2008. So, the correction or the cut is going to be deep. It’s going to take a long while,” said Bhambwani.
Technical Analyst Vijay Bhambwani of bsplindia.com is positive on ITC and HDFC Bank.
Here’s how Vijay Bhambwani views the stocks on board:
On ITC:
I would remain optimistic on ITC. Its bucking the overall weakness in the markets. As long as it stays above Rs 170-175, on a sustained closing basis, there is a case for an upside headroom till Rs 225 to even Rs 240 in the next 2 or 3 quarters.
On Infosys and TCS:
Infosys and TCS both need to pullback again. Everything else is conducive. They have fallen long enough. They are at the bottom of a bearish channel on the technical charts in the weekly and monthly charts. One could see another 7-10% headroom on the upside in the coming couple of weeks.
On HDFC Bank:
It is head and shoulders above the others. It is a very consistent rising tops and bottoms formation and has a huge amount of support at Rs 1,250-1,260. Currently, it is not very far from there. So, if one was to buy this stock with six-eight month timeframe, it is very easily likely to scale back to more than Rs 1,600 levels.
Disclosures: It is safe to assume that my clients and I may have an investment interest in the stocks/sectors discussed.
Source: Moneycontrol.com
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