In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com, Gautam Sinha Roy of Motilal Oswal and Vishal Kshatriya of Edelweiss suggest top picks for the day.
Sudarshan Sukhani of s2analytics.comMarkets are choppy and there are more selling opportunities, so for today consider going short in Adani Ports and Special Economic Zone. The stock has been in a trading range and yesterday it broke down on the downside from that range. That tells us that momentum has now started on the downside. It has become mildly bearish and in the short-term is likely to seek lower levels. So Adani Ports is a short sell for today.
PSU banks continue to underperform and are likely to go down even further. For today sell Dena Bank. It was again in a trading range and that range developed after a sustained down move. So it was really a continuation pattern, which meant that you make a range and then continue your down move which is exactly what is happening. The stock itself has broken down and may be looking at a target of even Rs 58. Gautam Sinha Roy of Motilal Oswal
We would like to pick Yes Bank as a clear winner given the backdrop of the sharp fall that we have seen in the stock price in last two days and that has been post reaction to RBI's moves to curtain liquidity. This has led to selloff in banks. Especially the largest selloff has been in Yes Bank, which has brought the stock level down to a very attractive valuation of around 2.2 times price to book. We believe it is a good entry point for investors as well as traders. We also believe that there is good upside from this level. Hence we would like to advice investors to buy Yes Bank. Vishal Kshatriya of Edelweiss
Go long on Asian Paints. Derivatives data of yesterday's trading session indicates aggressive long buildup in the stock. Technically also the stock has given a breakout with good volumes. I would recommend traders to go long on July Futures at current market price with a target price of Rs 5400 and stop loss below Rs 4800. Bata India has seen aggressive long buildup, which is indicated by open interest data in yesterday's trading session. I expect the stock to trade with a positive bias in coming days, hence recommend going long at current market price with a target price of Rs 1000 and maintain stop loss below Rs 890.
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