Buy Havells India, SRF; sell SKS Microfinance: Gaurav Bissa

Gaurav Bissa of LKP Securities told CNBC-TV18, "I have two buy and one sell recommendation. The first recommendation is a long call on Havells India. It has been stabilising around Rs 254-255 kind of levels. Short-term based formation is seen at around those levels and the momentum indicators are just about inching higher. They are also pointing out to an upside in the stock. It is trading above the short-term averages so it indicates for the near-term the stock might see some more upside going ahead. So, I recommend going long for target of Rs 270 with a stop loss at Rs 254." "Second recommendation is a buy on SRF. It has seen good amount of correction. The last leg of correction was without any significant volume participation. RSI was in the oversold zone, so there was a possibility of a bounce back. It has already seen a good bounce back and volumes are decent so far. It has taken a bounce from 200 DMA. It again indicates that going ahead Rs 1,070-1,075 kind of levels will act as a good support for the stock. It has already moved quite a bit. So even at these levels one can buy now for targets of Rs 1,160 keeping the stop loss at Rs 1,060-1,070 just because it has moved quite a bit," he said. "The final recommendation for the day would be a sell on SKS Microfinance. It continues to show significant downside. All the indicators, whether it is RSI indicator or momentum indicators are plunging downwards. It has given a breakdown below 200 DMA. The volume has been decent so far in this fall and there is a possibility that we may see some more correction," he added.