Charting Trends: JM Financial’s Rahul Sharma bullish on Federal Bank and Infosys

In CNBC-TV18’s special segment, ‘Charting Trends’, Rahul Sharma, Director and Head Technical and Derivatives at JM Financial Services, gave his latest analysis and commentary on the stock market as well as specific stocks and sectors.

In the private banks space, Sharma is bullish on Federal Bank. He said, “Around 2500 point correction on the Bank Nifty, the Federal Bank has actually held its entire structure, it in the rising channel, and continuously shifting basis higher. Now, I think Rs 94 remains very crucial support for the stock, and it can be bought for a trading upside of around 10 to 15 percent from current levels. So Federal Bank on the banking space remains our top pick on the long side.”

On IT he said: “At this point in time IT as a sector looks good, as a defensive that can play out very well. Our top pick remains Infosys at Rs 1,700, it can be bought with a stop loss of Rs 1,650 and there is a good possibility of the stock heading towards Rs 1,800-1,850 mark. So, I think IT as a sector should stand out in this volatility, and some of the large-cap names, especially Infosys looks pretty solid on the technical charts.”