Buy Dredging Corporation, Engineers India, India Cements: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Chances are those who looked at global cues are now trapped on the short side. The way the market is moving higher, large stocks turning around, it was clear yesterday’s correction was because of Reliance Industries and Infosys. Once both these stocks turn, I would not be surprised if the market closes at the highs of the day and very close to previous highs because this short covering will only increase. So, chances are banks will outperform and Bank Nifty will soon see 21,700-21,750."

"Today, particularly PSUs are doing very well. So, Dredging Corporation is a buy with a stop loss of Rs 685 and target of Rs 710. Engineers India (EIL) is a buy with a stop loss of Rs 148 and target of Rs 160. India Cements is a buy with a stop loss of Rs 160 and target of Rs 172," he said.

"Cement is not the top performer in this market. The top performer remains NBFCs and PSUs. So, ACC and Ambuja Cements I don’t think will really shoot the moon with their movement. India Cements generally tends to perform because it is part of the midcap group which is outperforming in general. So, overall, UltraTech Cement and India Cements are outperforming in the market. I think ACC and Ambuja Cements remain laggards."

"ITC has been in a strong uptrend. It goes into bit of a huddle off and on, but overall I think targets of Rs 315-320 seem likely in the weeks to come."

Disclosure: Reliance Industries owns Network 18 that publishes Moneycontrol.com.