stock picks: Mandar Jamsandekar’s 3 stock picks for next week
The index closed below 17,000 on Friday. How do you assess the move and what is the way forward?
One bright spot that I witnessed in this massive sell off is that the market still hasn’t broken its important support levels which are between 16,942 and 16,850. Nifty has rebounded to 17,600 levels from the recent low he had known during the week. This support will therefore play a crucial role for next week.
I think the market would continue to stay in a range between 16,850 and 17,600. So if this support is not broken we could see a rebound in the coming week. Therefore, these support levels are going to play an important role and we have to see how the trend develops or how the price reacts to these supports.
What choices do you have for the new week?
I have a mix of buying and selling for the coming week. So I’ll start with Bajaj Finserv. This action broke support and traded weakly in recent days. I think more declines are coming, so I recommend a sell on Bajaj Finserv with a stop loss at 17,000 for a downside target of 15,500.
Then the second is a purchase on Wipro. Wipro and Infosys have managed to show some strength and I think that strength could help the market get off to a positive start next week. Wipro technically broke resistance at 670 levels and closed above that level. I therefore recommend a purchase from Wipro with a stop loss at Rs 660 with an upward target of Rs 720.
The third is a high risk call which is a purchase on LIC Housing Finance. The stock is trading at the support at 363. I think 360 is a good support for the stock which has rebounded several times from this level over the past few months and therefore recommend a buy with the stop loss at Rs 350 with increasing targets of Rs 375.