Akshay Bhagwat of JM Financial Services, in an interaction with Business Today Television (BTTV) on Wednesday, shared his views on One 97 Communications Ltd (Paytm), KRN Heat Exchanger and Refrigeration Ltd, Ather Energy Ltd and Vishal Mega Mart Ltd.
On Paytm, the market expert said the stock has risen sharply in the recent rise and advised traders who had entered at lower levels to consider booking profits.
"Going strictly by technical parameters, profit booking is a must in this stock at the current levels if you have entered into this stock at good rates on the lower end. I think if the stock corrects from here, we can have some significant correction going ahead. So I'm slightly skeptical about buying Paytm at the current rates. Book profit is my advice if you are a trader going by technical charts," he stated.
Bhagwat said KRN Heat Exchanger had staged a technical breakout around Rs 1,350 a few days ago, with the move coming through two consecutive gap-up openings.
"A few days back, the stock had staged a breakout at the levels of Rs 1,350, and this breakout on technical charts came in form of two consecutive gap-up openings. Now, with the correction setting in from Rs 1,650, the chances are likely that this gap area can be filled. So your buying area is around Rs 1,350. That is where you can reenter KRN Heat Exchanger," he stated.
On Ather Energy, Bhagwat said the trend remained strong following the stock's entry into the futures and options (F&O) segment.
"I think the trend is still strong and firm. It's just the market conditions which are seeing a sideways action since last few days. So if you're looking at re-entry opportunities, roughly around Rs 1,500 is the point where you can consider a re-entry in Ather Energy," he added.
On Vishal Mega Mart, Bhagwat said the stock had corrected significantly from its high of Rs 152 and was trading near Rs 100. He said the stock could see a temporary recovery rally but not a trend reversal.
"This stock has seen a significant correction. I think, right from the tops of Rs 152, it has significantly fallen, leaving aside a massive pricing which we had four months back. It's almost near the price where it was listed or where it took off, that's around Rs 100. Probability is high that from these levels it might attract buyers again. There might be a temporary recovery rally. We're not calling any reversal as of yet, but a temporary recovery rally which may extend all the way till Rs 120 at the best," he said.
"For the trading aspect, with stop loss of Rs 90, you may buy this at current rate, average it out. Rs 120 is the target area you can look forward to. Time horizon should be roughly around two to three months for these targets to be achieved," he added.