Buy Bajaj Auto, says Hemant Thukral

Buy Bajaj Auto, says Hemant Thukral, Head - Derivatives Research, SBI Capital Securities.

Thukral told CNBC-TV18, "Bajaj Auto has been thrashed and we have already seen 75% open interest build up with cost of carry completely going off, so all short positions are in the system. It is one of the highest shorts that you have seen accumulated in this counter over a long period now." He further added, "The stock is approaching very crucial levels around that Rs 1300-1275 mark, already corrected 16%. So if you are expecting Nifty to bounce back, technically also the stocks, which are having the highest short positions will be the ones to bounce back from here on. Now at these levels the risk reward ratio is in your favour, so keep a stoploss of Rs 1260-1250 and buy Bajaj Auto for a target or a pullback just back to Rs 1420-1430 levels."