When are we going to hit that record high level? It seemed like a when and not an if but that when is also taking quite a bit of time now.
Vishal Malkan: It is very close and it is just a matter of time before we hit that. And we should not look at like five points plus-minus. We should be looking at the outperformers right now, the stock specific ideas which are looking great. Nifty, Bank Nifty might not give you that returns compared to what we get in stocks or sector specific. So, I would go for more of stocks than Nifty.
Well, despite the chatter about the expensive valuations, the bubble, the smallcap continues to outperform the largecap that we have been seeing currently. Do you expect similar trend to even continue going forward?
Vishal Malkan: I think as long as it is going up, we should not try to catch the top. There are no signs of bearishness, no signs of divergences. So, nothing on the charts as of now. So, let us make the best till it lasts.I am watching that for CESC and Tata Elxsi. Both of them have been having great runs so far, even month to date, week to date, etc. What would be your recommendation on these two names?
Vishal Malkan: Out of the two, I would go with CESC, which has a fresh breakout above that 200 levels and sustaining above that with good volumes and patterns are also good.
Momentum indicators are in the bullish zone. So, I expect CESC to touch around 220 to 225 in the next few trading sessions.
Anything on SBI Card, seems like a breakout today.
Vishal Malkan: SBI Card, yes, it is actually not yet breakout because the resistance is around that 740-745 level, so it should close above that and also, it has multiple resistances above.
So, I would avoid this because there are multiple resistances, which can be 740, 750, 760. So, a stock which has so many resistances on the top should be avoided with a clear breakout. Like we just discussed CESC, which has a clear path on the top is the best way to trade.
On GSPL, that stock has been continuously gaining for a few days.
Vishal Malkan: GSPL, yes, that is a stupendous move. But now and as I just mentioned there is resistance of 400 levels which has not crossed since last six months and that is a strong resistance. So, once it closes above 400, I think then we can see a fresh move.
But which are the other stocks on your own radar, anything that looks ripe for a breakout? What are those top recommendations?
Vishal Malkan: So, one of them is going to be Lupin, which has crossed its multi-year high after a long time and it is making higher tops and higher bottoms. So, Lupin, is definitely the best bet of course, pharma sector is outperforming since last few months so that is my bet.
2110 would be my stop and 2250 would be the target for the next few trading sessions. And the second one would be this Ashok Leyland, which has crossed that 255 mark on a closing basis. So, I will go with a buy on that with a stop of 252 for targets of 275 and 285.