Can you give some high conviction trading tips for 15 July 2020? How should I approach private banks now?
Answer
Answer
On 14 July, it was the private banks like HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank that put pressure on the Nifty leading to a 190 points correction. Banks will remain weak as the overhang of a possible spurt in NPAs is still lingering. Here are some trading ideas.
· Buy Berger Paints at Rs.501 for targets of Rs.550 in one month time frame. Berger stock has stabilized and could be a key beneficiary of post-COVID recovery in demand.
· My recommendation on 14 July, Bodal Chemicals at Rs.73, was up 16% on same day. Buy more of Bodal Chemicals at Rs.80 levels for revised higher targets of Rs.105.
· Buy Eveready at Rs.88 with targets of Rs.110 in one quarter. Eveready could see a lot of buying interest after the recent stake purchase by the Burmans of Dabur group.
Watch out for the Reliance AGM announcement on 15 July. That could set the tone for RIL stock and also for the markets overall.