Buy Bajaj Finance, JSW Steel; short Dr Reddy's Labs: Ashish Kyal

Ashish Kyal of wavesstrategy.com told CNBC-TV18, "The first stock on the buy side is Bajaj Finance. This stock has continuously outperformed the overall market. If you check the relative chart as well, this has been a very strong outperformer within the midcap space. There is more room left on the upside given the fact that a strong bar formation is seen even in today's session. So, one can initiate long positions on Bajaj Finance keeping a stop loss of Rs 8,900 for the target of Rs 9,830." "Second call on the buy side is from the metal space, JSW Steel. Metals space was underperforming few months back and now, we can see that the overall outperformance is coming in from this space including stocks like Tata Steel, Hindalco Industries and JSW Steel. All of these stocks have started outperforming. So, there is some sector rotation which has happened for the past few weeks and JSW Steel looks to be headed higher towards the level of Rs 1,700 or higher above that. So, one can initiate long positions on JSW Steel keeping a stop loss of Rs 1,605 for the target level of Rs 1,715 over the short term," he said."The third call on the sell side is Dr Reddy's Laboratories. This stock touched a high of Rs 3,700 and reversed sharply from there. Also, the last pricing segment was taken out in faster time, so there is price as well as time reversal in Dr Reddy's over short term and there is a possibility we can see some retracement of the recent upleg. It can head towards the level of Rs 3,250-3,270. So, one can initiate short positions on Dr Reddy's, but keeping a strict stop loss of Rs 3,600 for the target of Rs 3,270."