Buy Wockhardt, Divis Laboratories, Aurobindo Pharma: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Wockhardt is a buy with a stop loss of Rs 628, target of Rs 650. Divis Laboratories is a buy with a stop loss of Rs 570, target of Rs 600. Aurobindo Pharma is a buy with a stop loss of Rs 538, target of Rs 560. This is a special situation, hence all three of the stocks are pharmaceuticals."
"The force stuff is over with last month's expiry. Now in the first couple of days if the downtrend resumes, often there are people in the know, particularly in these kind of momentum stocks. So, maybe somebody knows something, some default is coming. Something else is going to happen. When the event happens, you would think that the fall was probably justified. So, the way these stocks are declining, there is no smoke without fire. So, if you have these Reliance Anil Dhirubhai Ambani Group stocks, get out and wherever the market goes, chances are these stocks may not recover in a hurry," he said.
"Still, I do not think the best news is priced in like orders are coming, capital goods is on fire. It is not that kind of a situation. So chances are today's Larsen and Toubro numbers will be good and probably some more people will get confident about infrastructure/capital goods. So, chances are that stock moves up on today's numbers. It will only be when you get 2-4 quarters of good numbers and then the expectations tend to get too exaggerated. Only then you will see selling on results. I do not think right now anything is really priced in. If you see 10 years back, probably the stock was at this price. So, in 10 years, nothing has happened in the sector. My sense is that the stock reaction would be good to the numbers."
"Basically, the way largecaps are now acting, it is very clear that some big money, exchange traded fun (ETF) money, largecap money, foreign institutional investor (FII) money is entering these stocks. HDFC Bank, HDFC, Reliance Industries, ICICI Bank, all these stocks are receiving money. So, I would think that today is a pause and finally, ICICI Bank should head towards Rs 335-340," he added.Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd