Buy HDFC, Cipla, Aurobindo Pharma: Ashish Chaturmohta

Ashish Chaturmohta of Fortune Equity Brokers told CNBC-TV18, "Banking stocks will continue to be in focus; even the counters in financials like HDFC and LIC Housing Finance which have been continuously correcting for a long time. We will see a very strong recovery in counters like LIC Housing Finance, which has formed a very good base and in last three days we have observed a decent amount of build up."

"There would be a clear case of short covering, we will be looking for a target of Rs 186-190 in LIC Housing Finance in next three-four trading sessions. One can initiate a long position with a stoploss below Rs 164. Apart from that, HDFC has formed a very good base at lower levels and technically also it is a inverted head and shoulder formation. So clearly Rs 50-60 upside is possible in a short span of time from current levels. We are expecting a target of Rs 810. One can initiate long positions keeping Rs 745 as a stop loss," he said. He further said, "Among the few pharmaceutical counters, we like Cipla. If one looks at Cipla, it is trading near its all-time high after a consolidation of almost 10 months and we have observed a build up of almost 15-18 percent in the new series. There is a lot of buying interest from the institutional side. So we are expecting a target of Rs 450-455 in a short span of time in Cipla. One can initiate long positions keeping Rs 420 as a stop loss." "Aurobindo Pharma is one counter which has formed a very good base at current levels. It had a strong resistance at Rs 190, but the way open interest (OI) build up is happening between Rs 180 and Rs 190 levels, it seems that there is a clear chance of a breakout above this level and we may expect a target of Rs 210 in next three-five trading sessions. One can initiate a long position keeping Rs 184 as a stop loss," Chaturmohta said. Also Read: Tightening home loan disbursals to lower risks: Keki Mistry Disclosure: Few of these counters he has recommended to his clients. He does not have a personal holding in any of them.