/Kunal Bothra picks out 2 stocks worth buying this week

Kunal Bothra picks out 2 stocks worth buying this week

Independent market expert Kunal Bothra picks out two stocks – DMart (Avenue Supermarts) and Banco Products – that traders can look forward to buying this week. Edited excerpts from an interview.

On rally in PSU banks
From the PSU banking pack, SBI is the leader even though the price action may not be as fast paced as other PSU banking names like Canara Bank, Bank of Baroda, PNB or Indian Bank. Nevertheless, I still think SBI is one of the key reasons why the entire PSU banking rally has got a lot of strength. There is more durability when you see SBI rallying up higher. That is where I believe not just short-term traders but even institutional hands come at play. But as compared to other names, there are many which look very attractive on the short-term charts. Now I think the market would probably be waiting for the second phase of the PSU banking rally to pan out. What we have seen so far could be the first leg of the rally.

What are your picks and what would you be watching out for in the week?
The first one I am recommending is DMart. It is interesting because after quite some time the stock has shown very strong signals of breakout, both in terms of price as well as volumes. A triangular pattern breakout for DMart is clearly visible on the weekly charts. So I would suggest a buy on DMart with a target of Rs 2,850 and stop loss at Rs 2,650. The second would be Banco Products, which also managed to do pretty well on Friday. The stock has crossed its major swing resistance on the short-term charts. The target is Rs 151 and stop loss could be kept at Rs 138.

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