Ashwani Gujral of ashwanigujral.com said today, "There has not been follow through on ITC. So, possibly this is what is called an island reversal; that sort of move has happened. With Rs 275 type of stop, I think people should get long. Slowly as the wounds heal, chances are ITC should get back above Rs 300, maybe Rs 315-320 because we should have had follow through yesterday. In fact day before only I think we did not close at the lows, so, that kind of proved that Rs 270-275 is likely to hold on. So, I think even ITC could contribute as we go forward."
"Today we have all buys and particularly focusing on the pharmaceutical space. Divis Laboratories is a buy with a stop of Rs 750 and target of Rs 775. Now the next group of stocks in pharmaceutical are doing well. Sun Pharmaceutical Advanced Research (SPARC) did very well yesterday. That is a buy with a stop of Rs 325 and target of Rs 343," he added.
"Capital First seems to be bottoming out. That is a buy with a stop of Rs 750 and target of Rs 775. In Idea Cellular, you could have follow through because chances are telecom is bottoming out and probably headed higher now. This is a buy with a stop of Rs 92 and target of Rs 100. Welspun Corporation is a buy with a stop of Rs 109 and target of Rs 117," he said.
Gujral concluded, "HPCL looks better of the lot because ONGC probably will have a pullback rally if at all - probably not even a rally, but HPCL possibly can get back towards Rs 425-430 type of zones. In any case, it has corrected quite a bit. So, this looks like a good buy here."
Also Read:
Sensex trades up by 32,000 on funds inflows, earnings hopes
