Buy Tata Steel, HDFC, Axis Bank: Yogesh Mehta

Yogesh Mehta of Motilal Oswal told CNBC-TV18, "We are recommending to go long on Tata Steel. Currently futures is quoting at Rs 533 in current month and next month it is discounted by Rs 8-9. So, one can take a position next month as well keeping Rs 10 as stop loss from the purchase price. If it is in the current month then Rs 526-525 and we can look at Rs 547-550 as a price target for cash levels. So, accordingly one can trade on futures."

"HDFC is showing strong momentum and it is resilient to go down. So, around Rs 1650 level one can look at entry into HDFC futures, keeping a target of Rs 1675 and stop loss would be something around Rs 1640-1639 levels," he said.

"Axis Bank has shown strong momentum but even in last expiry it was not crossing Rs 520 level which is a strong resistance level. So, even with this positive news flow though the stock is up by 4 percent, Rs 520 still remains a key resistance level. So, once it breaks that level and closes above that level, then one can look at initiating long into Axis Bank but till then otherwise avoid because it is Rs 510 already and Rs 10 upside would not be in favour of bulls with the risk reward ratio," he added.