Buy IOC, target of Rs 228: SP Tulsian

SP Tulsian of sptulsina.com told CNBC-TV18, "In IOC if you see the average volume it is more than 6 times. There has all been unanimity in the market that IOC is going to go for the FPO. It is hard pressed, there is no other go. In that case LIC will come to salvage and all that but now this cross holding drama we are seeing the short covering happening. Number two, people have been talking that to have the good price discovery because may be this deal will get entered into or consummated may be in a week to ten days."

"Oil India and ONGC will come to buy that counter to give a better exit to the government of India because that kind of market making which we have seen in Power Grid also. Such a big FPO if we can have such a massive market making having taken place I don’t rule out that possibility happening here also that even if a price of Rs 240-245 is being planned to be given as a rate for exit. So, take that as a long position. Look for a level of Rs 228 with stop loss of Rs 223," he added.

"Second stock I am going on Future Retail. I have been consistently maintaining my positive view in the start of series because it is going out of F&O from this expiry. I am seeing lot of positions getting shifted into the cash segment or may be the short covering started happening because in the last December series people have really gone short. They have kept their shorts rolled over thinking that ahead of the expiry the share will go weak but it is happening other way because of the technical factors. Look for a level of Rs 89.50 with stop loss of Rs 87."

"I am going long on Tata Power. I don’t think that the technical weakness is seen much. Even the fundamentals if you really take a call it has corrected much more than what is desired. Look for a level of Rs 80 with stop loss of Rs 78.50," Tulsian said.