Amit Gupta of ICICIdirect recommends buying State Bank of India, Vedanta and Oracle Financial Services.
Amit Gupta of ICICIdirect told CNBC-TV18, "Stock specific, still the opportunities are there. In PSU banks yesterday, there was heavy short closer in both IDBI and Oriental Bank of Commerce (OBC). So my sense is that people were little prepared for this particular move by the Finance Ministry and they started closing their short positions."
"So, today obviously we have a gap up, but ultimately, we can look at State Bank of India (SBI) also on declines. So, I think Rs 300 \has formed a base, so, once it comes closer to Rs 315 again, because I think it has got little what market was expecting, so there may be some disappointment because of this. However, around Rs 315-310, it is a good buying opportunity in SBI."
"From the metal space, I think because the kind of strength we are seeing in the international markets again, we can start looking at Vedanta. There are heavy short positions which were placed in Vedanta before, but now we have already seen a substantial short closer when it has moved up from Rs 300 to Rs 330 levels."
"If you look at this particular series alone, in the last one week or so, we have seen almost 18 percent of long addition in the stock. So it is a very good story where the shorts have been covered and the longs are getting added. So this is good for the momentum to come back in the stock. It is a story which is linked with higher crude oil prices as well because Cairn India is a part of Vedanta and that is why I think coupling both these stories we can go long in Vedanta at the current level and can look for a target of Rs 375."
"We have already recommended this stock to our clients and I think now because it has already seen a correction before, from Rs 340 to Rs 280, I think the downside seems to be very limited in it no," he said.
"The midcap IT has already performed, but Oracle Financial Services had strength before when the whole pack was falling and it has taken out the last two and half years resistance of Rs 3,900-4,000 levels. The delivery buying is almost three-month high delivery in the stock. So people are buying in cash, the future positions, though the open interest has remained near multi-month low so far.""So there is enough headroom for these long positions to get added in the stock. Despite the fact that it is at life highs, the leverage is not very high. So that is very comforting for the stock to save it from any major decline. So, go long in the stock, look for a target of Rs 4,650," he added.