Maintain buy on REC, pick Oriental Bank from PSU banking space: Hemant Thukral

Hemant Thukral of Aditya Birla Money told CNBC-TV18, "We have chosen two midcaps today. First is Rural Electrification Corporation (REC). The stock started seeing some short covering yesterday. Cash volumes moved up, average cash volume is 36 lakh shares of last eight trading sessions and yesterday 1.3 crore shares were traded."

"Important for me is that 15 percent shorts were still outstanding. So, we expect the short covering to continue. We are maintaining a buy with the stop loss of Rs 167 and we expect this stock to touch Rs 177-178 in next two to three trading sessions."

"The second stock I am recommending is a PSU bank. We have seen some buying finally coming back in PSU banks. We expect this midcap PSU bank rally to continue for two to three trading sessions. In that we have chosen Oriental Bank of Commerce (OBC). It is added 5 percent open interest and for me interesting was the seven days trading range between Rs 123 and Rs 127, it managed to break on the upside. Now, the stop loss we will be maintaining is Rs 127 and target we expect is Rs 138," he said.