Buy Cairn India, target of Rs 340: Anil Manghnani

Buy Cairn India with a target of Rs 340, says Anil Manghnani, Modern Shares & Stock Brokers.

Manghnani told CNBC-TV18, “Cairn India, I just figured between USD 91 per barrel and USD 89 per barrel, crude also has a lot of support and it is coming down from close to USD 110 per barrel. So it has been already a sharp fall where I think it needs to settle and maybe give a bounce back to USD 100 per barrel levels. So I think that should help Cairn maybe in this dip, Rs 320-310 is a good support range where you can buy with a target back to around Rs 340.”
He further added, “At least the initial surge in the Nifty, be it only 150 points, was largely on account of the bank Nifty. I think between 9,100 and 9,000 it has hit a cluster of averages, a major support levels. So I still believe it will hold that 9,100-9,000 range and if the market had to rally it probably would be led by the banks. Yes, it has been only SBI so far but I think some of the other ones like ICICI Bank also could start participating in the pullback. On the upside, I think the first key target would be closer to about 9,600 so yes, I wouldn’t be surprised if any rally in the market was led by banking.”