Problem in Infosys could linger on; buy RBL Bk, HPCL, Chennai Petro: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "You probably recall that moon-shot conversation we had last quarter when Infosys' results came out. Now we can blame Murthy and X, Y and Z. This was coming. As far as the stock is concerned, on June, 2016 it was at Rs 1,200. Today at Rs 900 it is breaking very key levels and the bars which are being formed are actually fairly large bars. So my sense is that a lot of people are possibly selling Infosys and by people, I mean institutions, long-term holders, mutual funds, etc. So this large bar is not formed by retail. So there will be follow through and I will not be surprised if it gets to Rs 700-750. So the problem may not be over just yet because as you heard, it is not that easy to find a CEO and possibly, it will keep drifting down like we have seen with pharmaceutical stocks. Tech anyway is not doing so well, so this Infosys problem could linger on."

"I would buy into an RBL Bank with a stop loss around Rs 519, target of Rs 540. Hindustan Petroleum Corporation is a buy with a stop loss of Rs 445, target of Rs 470. Chennai Petroleum Corporation is a buy with a stop loss of Rs 390, target of Rs 421."

"All of these insurance stocks, their mergers, etc. have not worked out and hence, both, ICICI Prudential Life Insurance and Max Financial Services have come off. But, between the two, I would still go with ICICI Prudential. Max has been choppy at best."

"Interglobe Aviation, I think is still in a strong uptrend. This correction should be used to buy. Overall, they are most impacted by crude prices which are under control. So overall, these stocks can be bought on correction because IndiGo recently made a new high."