Buy Sun Pharma, Cairn, Tata Steel, BoB, Torrent Pharma: Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Sun Pharmaceutical Industries has been a strong stock, probably the best stock in the Nifty so far. Possibly, it will bottom out way before other stocks, so this is a buy with a stop loss of Rs 847 and target of Rs 880. There is probably some FDA approval also it has got this morning." "Cairn India is looking ready for 15-20 percent style move. The reason is that it is totally bombed out in terms of the quarterly performance. For seven quarters the stock has gone down. Oil seems to be getting some traction back. Yesterday there was lot of bad news on Cairn. Oil prices had fallen, there was the Cairn Energy issue which had come up but the stock did not fall. So that is an indication that there is some sort of buying that is visible even on bad news. So, this is a buy with a stop loss of Rs 122 and target of Rs 136," he said. "Tata Steel is probably going to continue the rally it had on Monday. So that is a buy with a stop loss of Rs 247 for target of Rs 262." "Often the one day kind of correction leads to higher targets on stocks which initiated the rally. So, yesterday was a pause and I did indicate that maybe at lower levels, Bank of Baroda (BoB) would be a good buy. So, I think that rally should continue even on PSU banks and I think even Rs 160 could be possible but for the day I think Rs 148 is a fairly decent target," he added. "You have stocks like IndusInd Bank which have come off quite a bit and are oversold, so, these are those overstretched stocks which could have sharp pullback rallies. Kotak Mahindra Bank generally tends to show traction whenever the market moves higher. However, wherever there are short positions still because yesterday possibly some people did go short again, so, those positions could again get covered. So, mainly if you want for the day, I think PSU banks will perform much better." He further said, "Given that all of the midcap pharmaceutical stocks have really been bashed up quite hard, it is time for all of them to probably to do some sort of pullback rally. Torrent Pharma is probably the best performing out of all of them, so this is a buy with a stop loss of Rs 1,300 and target of Rs 1,365.""The kind of rally Just Dial has had, that would invite shorts. Obviously you will short with certain tactics but clearly this is a rally. If we get closer to say maybe Rs 600 or thereabouts, those will be places where you would look to go short again on the stock because the kind of downtrend it is in, I don’t think this buyback is going to solve any problem. So, just wait for the prior day’s low to get taken out and I think Just Dial will make fresh lows.""The bottom maybe temporary in Aurobindo Pharma but given that it is collapsed almost from Rs 900 down to Rs 600, there could be a rally back towards probably Rs 700-720. So, Aurobindo Pharma like other midcap pharmaceutical stocks could participate in this pullback.""HDFC Bank has started making the low of the day. That is not a good sign for the rally overall. So, I don’t think I want to go long right now. Possibly you would go short on Adani Ports with a stop loss say around Rs 216 and look for targets of Rs 202. Given that, it is already had a three-four day type rally, in case 7,200 starts giving away, a few short trades could be in order." "You can go short BHEL with stop loss of Rs 111 and maybe this time look for targets of Rs 98. So, all of these poor quality stocks which are now making lows of the day, immediately at open that is where you should try to go short."