Buy NHPC at current level: Panda

Jitendra Panda, Future Capital is positive on power sector and has recommended one can buy NHPC even at current level.

Panda told CNBC-TV18, “If you observe now we are seeing very positive action on the power sector especially the midcaps like NHPC, Power Grid and Tata Power. I remain positive there. There are long positions getting build up there. In the whole scenario if you see NHPC is the top pick from my side. NHPC I would say at current levels also can be bought. We are seeing today also around 18 lakh positions open interest getting on the long side build up indicating that there is some positive news expected in the sector and we are seeing there.” He further added, “NHPC can be bought with Rs 19 as the target and maybe keep Rs 17 as the stop loss. So that could be one buy there. The second sector which is seeing lot of positive movement is pharma. We are seeing in pharma stocks also Ranbaxy Laboratories, Dr. Reddy’s continues to rollover the long positions there and my top pick remains in the sector Sun Pharma. At current level we can again go long whether for the August series expiry we can go long and keep the stop loss of Rs 660 and certainly look at Rs 710 as the target in the short-term maybe for expiry week or next week.” “So I believe that this sector is showing strength and to add to that IT sector is another one which has done well in this series and would continue to do well. Wipro is one stock where you can look for long positions if you are looking for long there and look for buying the Futures there. You can do for August also, there could be some trading gain and that the stop loss can be at Rs 350 and the target could be Rs 390. But the sector which is looking weak is banking and metals have not shown interest now. The long position on the September rollover is weak on metals. So metals is where we are little cautious. Even the capital goods have not shown action yet. We see BHEL and all the infra stocks are losing positions. The rollover positions are continuously lower. So that’s the concern area. We have to wait for some action from the government. Maybe then only some pick up may happen.”