In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com, Ambareesh Baliga of Edelweiss Financial Services and Amit Trivedi of investworks.in give top picks for the day.
Sudarshan Sukhani of s2analytics.comMarkets are in the strong upside momentum and we want to go with momentum stocks that are exhibiting signs of further rallies. Buy NTPC. It was in a deep correction. That correction ended when it broke out above a small trading range on the upside. Once these breakouts occur, midcap and momentum stocks usually have more steam before they encounter resistance. NTPC's resistance is much higher, so it is quite possible that this trading range breakout can see it gain many points, before it does stop. So consider buying NTPC for the day.
Buy Sun TV Network for the day. This stock was in a trading range and it has broken out of that range. There is follow-through in the sense that the breakout has been followed by more gains on the upside. These gains should be sustained because Sun TV is in any case in an uptrend and when an uptrending stock sees a range breakout on the upside that suggests that a strong momentum move is coming. So, buy Sun TV as usual, keep a stop loss, but be on the positive side. Ambareesh Baliga of Edelweiss Financial Services
We have a buy on Reliance Infrastructure. The trigger was the termination of the Delhi airport metro. If we assume a nil value for this business, there is still significant cash in the books and looking at the investment book and the steady power business, we feel that this stock can move up to levels of about Rs 511-515. So, despite the move which we saw yesterday, one can still buy this at current levels. Amit Trivedi of investworks.in
Given the way market is moving we have two recommendations on the long side. Our first recommendation is to buy Larsen and Toubro (L&T) at around Rs 1,440, for a target of Rs 1,465 and stop loss can be placed around Rs 1,425 level.
Our second recommendation is to go long on Cipla at Rs 396, for a target of Rs 410 and stop loss of Rs 388.
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