Godrej Properties, Ashok Leyland and Bata India among top buys in March F&O expiry week: Gaurav Ratnaparkhi of Sharekhan

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said that the Nifty50 might consolidate in the range of 17000-17500 in the expiry week.

In an interview with Zeebiz's Kshitij Anand, Ratnaparkhi highlighted that within the range of 17000 to 17500, and dip towards the lower end of the range can be taken as a buying opportunity for the short-term traders.

See Zee Business Live TV Streaming Below:

Edited excerpts:

Q) Markets closed with losses of nearly 1 per cent for the week ended March 25. What led to the price action on D-Street as there was some nervousness in the second half of the week?

A) The Nifty50 was unable to extend beyond 61.8% retracement of the January – March decline. It tried to surpass that level, which is near 17330, in the last week; however, couldn’t sustain itself in the higher territory.

The overall structure shows that the index is consolidating its gains after the recent rally from the low of 15,671.

Q) How do you see markets moving in the last week of March which will also be F&O expiry week. Any important levels that investors should track on Nifty50 and NiftyBank?

A) The Nifty50 might consolidate in the range of 17000-17500 in the expiry week. Within this range, dip towards 17000 can be taken as a buying opportunity for the short-term traders.

Multiple support parameters are present near 17000, which are offering support to the Nifty50. For Bank Nifty, 34500-36800 will be the range for the short-term.

Going forward, short-term traders can go for staggered buying near 35,000-34,500

Q) Sectorally, metals, energy stocks take lead while consumer durable stocks saw selling pressure. What led to the price action? Will metal stocks be in limelight in the April series?

A) As you rightly mentioned, some of the consumer durable stocks witnessed downside pressure whereas metals and select energy stocks saw good traction in the last few sessions.

However, these two sectors, metals & energy, are losing momentum on the upside. So, there is a possibility of a short-term dip of about 3-5%. Nevertheless, post the dip, they are expected to resume the larger uptrend in April

Q) What is your view on Tata Tele? The stock rose over 20 per cent in a week. What does the technical suggest?

A) The stock is witnessing a sharp rally over the last three weeks. On the way up, it has crossed short-term hurdles and has retraced 38.2% of the January – March decline.

Overall, the setup suggests that the positive momentum can continue further and the stock can head towards the swing high of 180.80 and subsequently to the 50% retracement i.e. placed at Rs 190

Q) Your 3-4 stocks that are looking attractive for the April series?

A) Here is a list of stocks for the next 3-4 weeks:

Godrej Properties: Buy| LTP: Rs 1621| Stop Loss: Rs 1533| Target Rs 1720-1800| Upside 11%

The stock has broken out from a multi-month falling channel. The daily momentum indicator is in line with the price breakout. Hence, the setup is attractive from a short to medium-term perspective.

Ashok Leyland: Buy| LTP Rs 113.50| Stop Loss: Rs 108| Target: Rs 121-128| Upside 12%

The stock has broken out from a falling channel and even retested the breakout line. Structurally, it is gearing up for the next leg up. The risk-reward ratio is attractive at the current level.

Bata India: Buy| LTP Rs 1935| Stop Loss: Rs 1860| Target Rs 2030-2120| Upside 9.5%

The stock is set for a breakout from a brief consolidation. On the daily chart, it is forming higher top higher bottom & is expected to continue with this bullish formation.

The daily upper Bollinger Band is expanding and creating room on the upside.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)