Don't see Nifty breach 9000 in next couple of trading sessions: Manav Chopra, Monarch Networth Capital

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In a chat with ET Now, Manav Chopra, Monarch Networth Capital, says we could definitely see the levels of 9,252-9,300 for the markets in the next few weeks. Edited excerpts:

ET Now: We are just short of the 9000 mark. Come next week, where are we headed?
Manav
Chopra: The market is definitely quite bullish and we have not seen a good price decline since the market bottomed out close to 8000 level in December. This rally has been seen a parabolic move in a lot of sectors and it has been stock specific. The levels that we will be eyeing for the near term would be the support of 8820 and 8800 from the current levels.

As long as Nifty sustains these levels for the next couple of trading sessions or week, the chances for the markets to move to new highs would be there. I do not see that happen on an immediate basis for the simple reason the markets are in an overbought zone.

So, there could be a chance that the markets would oscillate near the levels of 8800 to 8950 for at least next couple of trading sessions and then eventually see a good break on the upside. But looking at the overall scenario and the structure and also the momentum, within next few weeks we could definitely see the levels of 9252-9300 for the markets.

ET Now: The rally in Axis Bank stock continues. How would you trade it come next week and do you sense that there are further legs to the rally in Axis?
Manav Chopra:
Absolutely. The stock has seen a good breakout after a consolidation of at least one and a half-two months. The stock will try to form a good base close to Rs 450-480 levels on the lower side and it did manage to see a good breakout from its inverse head and shoulder pattern.

This pattern usually forms after a good decline and the breakout that we saw this week, was accompanied by very good volumes. We did see the stock sustain above the 500 levels for at least couple of trading sessions. So one can definitely take a medium term perspective because the risk reward ratio is very good even at the current levels. The important support for this stock would be at Rs 500-505 on the lower side and a stop loss below Rs 500 could be a place for an upside target of at least Rs 595.

This could be a positional call but even though for the momentum play, if the stock exceeds Rs 530 on the immediate basis, Rs 545 could be the immediate levels to look out for. And if you are looking at this chart on the weekly monthly perspective, I can conclude saying that there is a good bottom which has been formed at the levels of Rs 480. I do not see much of a downside in Axis Bank at least for the near term perspective.

ET Now: Some stocks that our trader friends can look at come Monday morning?
Manav Chopra:
I have two picks. My first call is a buy on MRF. We have seen a good formation and a good breakout today in this chart basically.

The stock has breached its trend line resistance with good decisive volumes and most importantly there has been a good reversal formation also on the weekly charts which indicates some good bottom is in place for this stock for the near term perspective.

The stop loss can be placed at Rs 50500 on the lower side and we can have an upside target of Rs 54000.

My second call is buy on Coal India the stock has been on a very good momentum recently and has been forming a series of higher tops and bottoms. Since the stock has managed to see a good weekly close above Rs 325, in the next few trading session, we could see the stock move higher as the momentum is still very strong and positive.

The strong support for Coal India is at Rs 322. The stop loss can be placed at Rs 320 on the lower side for an upside target of Rs 360.
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