Buy Reliance Inds on dips; sell Infosys on rally: Bhamre

Bhamre told CNBC-TV18, “Reliance Industries I am bullish with rising crude oil price and rising GRMs and we are seeing good amount cash based of buying along with formation of long positions in a range of Rs 770-780, Rs 760 is a very strong support. I think stock has upside to Rs 840-860 levels so we would be long over there probably doing covered call writing or just buying call options. We would be active over there on the long side.”

He further added, “Infosys we were surprised by the upside move but then there was a gap filling exercise on the charts and I think Rs 2450 to Rs 2500 that remains a strong resistance. Infosys has good amount of long positions which have been created. These long positions would get unwind in this resistance zone so we don’t see significant upside above Rs 2450-2500, we wont short it now but if the rally happens and if stock goes to resistance zone then it would be a wonderful shorting candidate for us in Infosys so sell in rise in Infosys buy now or buy on dips Reliance.”