Akshay Bhagwat picks 2 stocks to buy now; sees quiet August series

economictimes.indiatimes.com:

Akshay Bhagwat, Senior Vice-President, Derivatives Research, JM Financial Services, says that on the Nifty, 19,600 is the key level to keep a track of if one is looking from a short-term trend deciding level for the market. Till this level is held, the market should trade in a range – 19,600 on the lower end and 19,850 on the upper end. Till 19,600 is intact, there is no problem with the trend.

Akshay Bhagwat also pre-empted a breakout in Chambal Fertilisers and sees momentum picking up in Granules India.What are your trading calls in this kind of a market today?The market is range-bound but my thought is that the stock-specific momentum is still intact. There are still a lot of green patches, which are seen in a majority of the counters. There are two calls which I have on my radar: The first one is Chambal Fertilisers.

If you see the price structure, Chambal Fertilisers, is forming a base around the Rs 260-odd levels. Looking at the basing formation, I am pre-empting a breakout trade. The stock is currently positioned around Rs 278.

The breakout point is roughly around Rs 280-odd levels. So I am expecting a breakout at about Rs 280, which may happen very soon. If this breakout matures, one can see a target right up till around Rs 295 on the upside.

So you can buy Chambal Fertilisers at the current rate. The first target would be Rs 295. The second target would be Rs 310.

As a risk management, you can keep a stop loss of Rs 267. The second call which I have on my radar is Granules India. We have recommended this stock to our clients.