Sudarshan Sukhani of s2analytics.com is of the view that one can sell Repco Home Finance and buy Gujarat State Fertilizers & Chemicals, Dr Reddy’s Laboratories and Sun TV Network.
Sudarshan Sukhani of s2analytics.com told CNBC-TV18, "There are buying and selling ideas because the markets are opening lower and we assume that they will stop, consolidate and go higher, but a lot of stocks may not follow the Nifty’s rally."
"For example, Repco Home Finance is already in a bear market and it is on the verge of breaking a strong support level. That is a short sell. Similarly, Kajaria Ceramics is going through a minor decline, it is a correction. But that correction probably has more space on the downside, that is a second short sell."
"So, this rally in the Nifty is likely to be inch by inch rather than in 100s of points. In that kind of rally there are these opportunities of going short. Of course the primary focus would still be on long ideas," he said.
"Gujarat State Fertilizers & Chemicals (GSFC) which has broken out of a multi-month consolidation - a very bullish pattern and it has significantly higher levels to go. So, that is a buying idea."
"Dr Reddy’s Laboratories is part of that now favoured pharma pack. I think pharma is slowly and steady inching upwards, that is a buy."
"In Sun TV, another very bullish pattern has broken out. I have no idea what Sun TV does and why, but there are much higher levels going ahead here. So, focus on these buy ideas and intraday shorts otherwise available."
"I am not shorting PSU Banks, that would be very silly, I am not buying them," he added."Two individual stocks are coming into play today - one is Adani Power and the other is Torrent Pharma. Both can be considered for the day."The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .