Amit Harchekar of A Plus Analytics is of the view that one may buy HDFC Bank and sell Infosys and IDFC.
Amit Harchekar of A Plus Analytics told CNBC-TV18, "We have seen some decline in HDFC Bank in recent days, but this decline is accompanied by good volumes, and on intraday chart, the stock has already formed a bullish flat pattern. So, we are expecting the stock to rally towards Rs 1,140-1,150. So, we are quite positive on the stock from seven to eight days perspective where we are recommending buy at these levels. Maintain a stoploss of Rs 1,058 and one can go long in it."
"Second stock I would like to recommend would be a short on Infosys. Now, from derivative perspective, the 10 years average open interest in the stock stood at 1 crore. However, in last three months, that open interest has moved towards 1.48-1.56 crore. Now, this data suggests that a lot of distribution is taking place in Infosys at these levels and since these open interest has not happened above Rs 1,170, it has turned out be a lifetime high. The stock has a potential to correct 30 percent in next six months timeframe. In the short term we are expecting stock to fall down to Rs 1,020-1,015 levels. So, one can initiate short positions in it with a stoploss of Rs 1,140 for targets of Rs 1,020."
"IDFC has given a false breakout for third occasion above Rs 156 levels. Now, this transforms into a price target somewhere around Rs 135-134. Apart from that a lot of retail participants are already eyeing this stock on expectation of big rally. The technical picture is looking extremely weak in the near-term. So, we would recommend going short on IDFC with a tight stoploss of Rs 156 because that turned out to be the false breakout level and expect target of Rs 135," he said.
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