Buy ITC, Federal Bank, Bharat Forge: Yogesh Mehta

Yogesh Mehta of Motilal Oswal Securities told CNBC-TV18, "ITC seems very good on the charts, it has made a high at Rs 320 and then corrected from that level to Rs 299-300; Rs 299-300 remains as a strong support and it has attracted fresh buying on Friday as well and closed at around Rs 306. So, we are looking at keeping Rs 299 stoploss and one can look at buying this stock and the target could be in the range of Rs 320-325."

He further added, "We are looking at Federal Bank which has given a fantastic flag pattern breakout on the weekly charts. So, Rs 120 was the previous high. It has crossed that and made a new high and sustained and closed at around those levels. So, this could be a good buy on the technical front and one can look at Rs 127-128 as immediate target and considering Rs 116 as the stoploss."

"The other one is Bharat Forge, we are looking at it on the buy side. Rs 1,155-1,160 are the multiple supports for this stock and it remains in the range of Rs 1,150-1,200. So, from here, one can look at buying it again, Rs 1,183 is the current price and we can keep a stoploss of Rs 1,156 with the price target of Rs 1,235."

"Cipla has shown a negative pattern on the charts, multiple resistance levels remain at around Rs 555-556 level and it closed at around Rs 535-536. So, risk reward ratio remains very good for short sell trade. Rs 536 is the closing, we can keep a stoploss of Rs 550 and we can look at a price target of Rs 510 to Rs 500 levels," he added.