Buy Repco Home Finance, UltraTech Cement; short SBI: Manoj Murlidharan

Manoj Murlidharan of Religare Securities told CNBC-TV18, "We are trying to see into those stocks where there is cash based delivery which is happened and possibly because of the volume weighted average concept that might work today. We are expecting some pullback to come into the stock. So Repco Home Finance is one we would recommend buying. We recommend buying it somewhere close to Rs 647 on today’s future as well, keeping a stop loss of Rs 641 and possibly a target of Rs 662 is where the settlement might be."

"We like UltraTech Cement as well because cement as a sector is seeing good bargain, buying which has happened right from the month of July and we believe UltraTech and ACC might be couple of those stocks which has seen good buying which is getting rolled in the next month. However, we still will go with UltraTech because we have seen good cash buying and we expect a good follow-up buying. So, Rs 4,000 is a current price we recommend buying in today’s future as well and Rs 3,942 as a stop loss, and we are expecting settlement somewhere close to Rs 4,120 on that," he said.

"Interestingly, the roll cost for the Nifty and the Bank Nifty are quite low and there is still rollover which has to happen. So, unfortunately there might be a chance that we might see long unwinding. Now, if that happens, with a current month futures we feel that State Bank of India (SBI) might become a short. So, SBI somewhere close to Rs 280 on current month futures is where we would recommend going short in that with a stop loss of let us say Rs 289 and we expect a good Rs 18-20, somewhere close to Rs 262 is what the target might be on SBI," he added.