Abhijit Paul, AVP - Technical Analyst, Brics Securities advice investors to buy M&M and short Tata Motors .
Paul told CNBC-TV18, "Within the auto stocks one can look into a pair. Tata Motors as I mentioned is one stock which is kind of quite stretched and is likely to correct from hereon. M&M on the other hand is very close to its supports. It can actually give a breakout. One can look to buy M&M and short Tata Motors. That can be a good pair trade."
He further added, "Cement has been an excellent sector for quite some time. Most of the stocks are hitting their life highs. First look into these stocks they are kind of little stretched. One who has been holding into these stocks for over a year and now is actually making quite a bit of profit and he should look to book some profits now. If one looks from another year's point of view from hereon I sense that there will be light of ease off from hereon and one can look to buy into dips. The short-term strength is likely to ease off but the long-term strength is still very, very strong so traders can look to come out of these stocks, the long-term holders hold onto it."
"Nifty per se seems quite stretched and it has almost tested the 5,400 mark. I sense over the week or two from hereon it should drift further down 5,250 is the kind of level from a short-term point of view that one should look at."
