Buy Axis Bank, Bharat Financial, Delta Corp, PSU banks: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Corporate lenders are coming back after several days of decline. The PSU bank index is right now up more than 1 percent. So, if you missed out the last time, we have just bought Bank of India, Union Bank, Canara Bank, get long on all of them. Chances are the rally has restarted."

"Axis Bank is a buy with a stop loss of Rs 528 and target of Rs 550. Bharat Financial is a buy with a stop loss of Rs 785 and target of Rs 810. Delta Corp is a buy with a stop of Rs 167 and target of Rs 180."

"The smaller bank the better it will do. So, chances are Bank of Baroda will do better than State Bank of India. However, in this kind of phase where nobody owns them, it is hated, nobody believes the rally, just get long on PSU banks, any of them and chances are you will see strong moves. So, by the end of the day you could be surprised on how much these stocks could come back because the weak longs are out. So, now in the second leg of the rally, chances are it is likely to start," he said.

"Bharti Airtel is a rank laggard stock, but even rank laggards can rally 5-7 percent. It has maintained its 200-day moving average for several days now. So that sometimes indicates that the stock’s trend is turning or maybe everybody who had to sell has sold. So, incrementally if there is any sort of positive news, even Bharti could go up. The real trigger as I have been saying are in this corporate lenders where things are changing rapidly where policy action is now becoming supportive. So, I think if you can choose, you should choose the PSU banks right now," he  added.