Buy Nestle, Colgate Palmolive, Shriram Transport, Power Grid: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "The FMCG flavour is definitely there in the market right now whether you take the benefits of Goods and Services Tax (GST) or the good monsoons which is spreading across the country now. The low beta stocks from this space have started performing now; low beta in the sense either they were consolidating for a long time and they did not participate with the Nifty run up broadly."

"Nestle is one of the picks that we are giving to our clients now because in the last couple of weeks, we have seen very high delivery activity. Now, it has been a new entrant in F&O segment also and that is where people have got the leverage now, they can take leverage and start buying the stocks and that is where the momentum can come in Nestle India. We believe it can move towards Rs 7,200-7,300 levels in this particular series. So one can initiate the buying positions and looking at this particular delivery, we have a quantitative model where we look at the last quarter delivery and the recent period delivery and then we calculate the Z-score. Now that is picking up very hugely. It means the buying interest is definitely increasing in it and we have initiated the long Call in this particular stock," he said.

"Another one is Colgate Palmolive. It has been consolidating for a long time. In fact, last year, it remained in the range of Rs 1,000-1,050 around and now we have seen it has started moving up. In the future segment, it has been there in futures for a long time, and now we are seeing that there is a very clear short covering trend. The open interest from 2.5 million shares, it has come down to 1 million shares. So it is a huge cut in the open interest and majorly the positions were on the short side. Now, it is above Rs 1,050 levels. I believe the levels around Rs 1,100 is a good buying opportunity in the stock, look for a target of Rs 1,195 and possibly your stop loss should be closer to Rs 1,070-1,065 levels," he added.

"Few stocks from the lower band of the market i.e. Shriram Transport Finance because the rest of the pack has performed much better. Now there are few opportunities in the financial space like M&M Financial and Shriram Transport Finance. Around Rs 1,000 or Rs 950 levels, it has been consolidating for a long time. Recently what we have seen, in fact in last couple of sessions there is huge block buying in Shriram Transport Finance. If you look at the open interest (OI), it has got doubled just in the last two sessions. So, that buying has occurred from Rs 1,000 to Rs 1,040 levels and that is where I think these are good support levels now. Yesterday it closed near Rs 1,040; even if it is declining by Rs 10-20 I think it is a good level to re-enter into the stock and look for a target of Rs 1,100 or beyond. So, we are targeting Rs 1,140 in it. Last year we had seen very high positions in this but because of certain reasons it did not perform. That is why there is high liquidation. Now from the lower levels again the positions have started picking up and because the market is consolidating here for the last three months, near 9,600, I believe such kind of stocks which are at the lower band should start outperforming now."

"If you look at the Nifty stocks because there should be certain Nifty stocks which should perform now in order to keep Nifty intact near these levels, one of them is Power Grid. From the power space, this has been the leader and recently what we have seen, good volume patterns coming in Power Grid. Whenever such high volume patterns come, it generally does not fall below those levels and that happened at Rs 100. We saw that last month also good volumes near Rs 100, whenever it is falling near those levels, a good buying is happening and now that has started happening near Rs 110 levels. So my belief is that there is not so much fall from these levels and it should start outperforming from here."