Buy HDFC, Kotak Bank; short Vedanta, Ambuja Cements: Harchekar

Amit Harchekar of A PLUS Analytics told CNBC-TV18, "HDFC has given a breakout from inverted head and shoulder pattern and that has occurred around Rs 1,120 zone. We are expecting this breakout to sustain and move higher towards Rs 1,200-1,220. Stop loss for long trade would be at around Rs 1,115. This is a buy trade." "Second would be buy in Kotak Mahindra Bank. There was a horizontal breakout above Rs 688 levels and we believe the stock has a good potential to go towards Rs 730-740 in the near term, unless it closes below Rs 675. So, Rs 675 turns out to be stop loss on a closing basis and we can expect a rally in the near-term," he said. "Other calls would be going short on commodity stocks like Vedanta and Ambuja Cements. Vedanta has given a reversal from bearish wedge pattern and this projects a downside target somewhere around Rs 75-80. So, we would recommend going short even at current level. Stop loss would be at around Rs 109 and one can play for a target of at least Rs 97 in next couple of days timeframe." "Last stock would be going short on Ambuja Cements. We are clearly seeing unwinding in cements stocks and within that, Ambuja Cements turns out to be the weakest. It has already given a break down from running triangle and we are expecting the stock to stabilise around Rs 200-205. Stop loss for future short would be at Rs 226," he added.