For traders, good time to take buy position in Reliance; Paytm a hold or buy: Akshay Bhagwat
Akshay Bhagwat, Senior Vice President — Derivatives Research, JM Financial Services, says for a positional trader, it makes good sense to take a buy position in Reliance now because the risk reward payoff is beneficial from current levels. Assuming that from highly oversold zones, Reliance again makes a comeback, the recovery can see a rally till Rs 2,900. Bhagwat recommends that if one has a buy position, keep a stop loss below 2700. As a trading bet, it is a very strong setup considering the risk reward payoff. One can consider buying Reliance for targets of around Rs 2,850, — the first target. Rs 2900 will be the second target with a strict stop loss below Rs 2,700. Bhagwat also says the Paytm stock can be a Hold or Buy. The upside can be Rs 950 to 1000 in the short to medium term scenario.
What is your market prognosis right now? Have we formed a bottom and are we likely to move upwards from here on or it is still too early to call a bottom right now?
Akshay Bhagwat: Markets have shown some tendency of recovery from the levels of 24,800 basis spot Nifty. The good part in today's session is that your volatility index has cooled down a bit 2.5%, so it is in the process of forming a possible bottom. It is just day one today after five days of losing around 1,400 points from the life highs and it is an attempt which the market is making on the back of the RBI event where some short positions in the derivative space are getting covered up.
Now, whether this bounce back has life or kind of fades off is the question.
