Buy Bharti Airtel, Dr Reddy's Labs, Bharat Financial; sell Hero Moto: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "I think Rs 1,000 is possible on Divis Laboratories. Also a lot of pharmaceutical stocks are now beginning to turn, the news is also beginning to turn. So, somewhere a large trading rally, if nothing else, is building up. So I would not be surprised if Divis Laboratories gets back to Rs 1,000-1,050 because that is where it fell vertically from. Basically, there is no resistance and possibly short covering, etc. will make it hit Rs 1,000-1,050 at least once."

"Bharti Airtel made a significant low yesterday because of bad news and it opened lower and closed at the highs of the session. So, this low is not going to get taken very easily. So possibly telecom stocks have kind of made some sort of bottom, stocks other than Reliance Jio. So Bharti is a buy with a stop loss of Rs 390 and target of Rs 415."

"Dr Reddy's Laboratories is a buy with a stop loss of Rs 2,300 and target of Rs 2,360. Bharat Financial Inclusion is a buy with a stop loss of Rs 958 and target of Rs 990. Hero MotoCorp is a sell with a stop loss of Rs 3,900 and target of Rs 3,750. Reliance Capital is also a sell with a stop loss of Rs 750 and target of Rs 735," he said.

"It looks like there is some expectation of news which is building up. So all of these bank stocks are a bit off their previous highs. So, Rs 180-190 on Karnataka Bank seems possible. Similar story is with the other banks because if one bank announces any tie-up or buyout, etc. from a larger bank, then every bank will start coming on the block."

"So, possibly there is some news flow on Karnataka Bank which is expected. So, let us hope it is good for everybody else also," he added.