Buy HDIL; sell Escorts, NMDC: Rajat Bose

Rajat Bose of rajatkbose.com told CNBBC-TV18, "I have two sell calls and one buy call. Buy call is on HDIL. Yesterday with record volume, and after a protracted sharp downtrend, it has formed a bottom and yesterday from the lows it recovered by 10 points and closed around Rs 57. Today I suggest a buy with a stop loss below Rs 54.90 on closing price basis and Rs 62 and Rs 65 are the two targets on the upside. This is basically a pullback rally in which HDIL reclaims some of the territories that it lost in the recent waterfall pattern."

"The two sell calls are Escorts which is already moving down and already met my first target around Rs 619, but Escorts can actually fall much further. The level of Rs 613 is the target that I have used as my second target but Escorts can actually go down to Rs 606 and below that it can even slide down to Rs 593. However I have not given the call in the future segment, so, I have used these two targets," he said.

"I have a feeling NMDC is unlikely to cross Rs 131-134 despite good results because the recent rally has factored in that good result and now a correction has set in; Rs 123.50 and Rs 120.10 are the two targets and Rs 131.10 is my stop loss. NMDC is also a sell," he added.