Buy Asian Paints above Rs 3900, says Harchekar

Buy Asian Paints above Rs 3900, says Amit Harchekar, IIFL India.

Harchekar told CNBC-TV18, "The bank Nifty made a whipsaw after moving above 9550 and again is down below 9400. Short term target for the bank Nifty is close to 8550 and that would be the area where we can expect a pullback." He further added, "State Bank of India (SBI) has been outperformer since last couple of weeks but solid banks like HDFC Bank and Axis Bank which earlier turned out to be a good outperformer now are turning extremely weak. So I won't be surprised a 5-6% correction in both banks but overall the view for the bank Nifty remains bearish. Every rally close to 9450-9500 should be used as a selling opportunity. Now if one is initiating short positions in the market at current levels, the stop loss for the short positions is at 4950 but if one want to review the stance for the market, the stance would be reviewed only once we see Nifty closing above 5040." "Asian Paints is placed at an important juncture. The moment we see a closing below Rs 3750 it would confirm a medium term reversal in this counter. So far if one look into the volume action that has been on the lower side so we need to wait for close. So as of now it seem towards no trading zone. Longs should be initiated only above Rs 3900 and for shorts to come in one should wait for a closing below Rs 3750."