Prefer financials over IT, pharma; buy JSPL, sell TCS, HDIL: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Aviation stocks seem to have momentum on their side, paints are now kind of moving sideways, but I think the best crude play is probably Reliance Industries in my opinion because it has corrected quite a lot and now it is showing upside momentum. You could have 50-70 points rally in the next few days, so, I would much rather look at Reliance rather than Jet Airways; Interglobe Aviation, etc. which have played out."

"Infosys has strongly come off its 200-day moving average on the upside. So, even if you do get rallies, yesterday’s 2.5-3 percent move on the downside just shows that there is still selling at higher levels. So, probably Infosys, Wipro, etc. you can sell, not so much Tata Consultancy Services (TCS) and HCL Technologies which are bit stronger. However, in this kind of market where financials are getting more impetus, I think it is best to ignore pharmaceuticals and IT and go ahead with financials," he said.

"ICICI Bank had a breakout and that was sustained. So, both, ICICI Bank and HDFC Bank look extremely strong. I think even IndusInd Bank, in that order. So, the large banks are looking like they will lead the move on the upside. United Spirits has been moving higher and is maintaining its 200-day moving average now. I think slowly but surely it should head towards Rs 2,800-3,000 and these sort of news flows help," he added.

"Jindal Steel and Power (JSPL) is a buy with a stop loss of Rs 122 and target of Rs 130. Tata Consultancy Services (TCS) is a sell with a stop loss of Rs 2,600 and target of Rs 2,520. HDIL is a sell with a stop loss of Rs 93 and target of Rs 85. Positional trader also I think can sell and probably look for targets of Rs 78-80. I think all of this bad news is now coming out and finally stocks will make a bottom in the midst of bad news. However, HDIL, not paying loans, etc. is not a good thing. Hence, I think there are better real estate stocks like Sobha, Godrej Properties, etc. They also get hammered in this collateral damage. So, that is where you look to invest."