Buy Ambuja Cements, Sun TV, ICICI Bank: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Stocks move up because of demand supply. Avenue Supermarts went up to Rs 50,000 crore and I was told that since each store has now Rs 300 crore marketcap hence it cannot go up further, it will go to four figures because people want to buy it and nobody wants to sell hence this will go to four-figures regardless of whatever valuation it sells at."

"I don’t generally like to go with individual stocks without sector actions being supportive. Given what IT space is doing, I am not interested in NIIT Technologies although just looking at NIIT Tech on its own, maybe you can have a 50 point rally but these rallies on technology stocks often are sold into," he said.

"Ambuja Cements has been doing sideways and this sort of breakout is probably a breakaway gap. So I would probably go with Ambuja rather than ACC but both are in uptrend. Cement overall is looking good. So this sort of news only propels stocks higher. I would buy into Ambuja Cements which has started a range expansion."

"Microfinance is coming under the hammer, so Ujjivan Financial and Equitas Holdings can be sold into. Sporadic buying on stocks like Escorts is something people can take on the long side."

"We have bought into PSU banks because in case the first dip gets bought so strongly just after one day of decline then chances are they have much more upside than people believe. So this is the time to get into PSU banks and ICICI Bank."

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Ashwani Gujral

Technical Analyst|ashwanigujral.com

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"Ambuja Cements has had a breakaway gap, chances are it will probably close at the highs of the day, that is a buy with a stop loss of Rs 258, target of Rs 275. Equitas Holdings is having a bad day, chances are it will close at the lows of the day. That is a sell with a stop loss of Rs 155, target of Rs 142. Sun TV post some bit of correction is a buy with a stop loss of Rs 860, target of Rs 885."