Buy Tech Mahindra, Kajaria Ceramics: Ashish Kyal

Ashish Kyal of wavesstrategy.com told CNBC-TV18, "The overall trend for Tech Mahindra has been strongly positive. It was consolidating for almost three months from March onwards till the end of May and gave a very strong breakout above Rs 490-500 levels. That was a very strong positive breakout from a triangle pattern and looks like this can be probably in the third wave. I am expecting this stock to move towards the target zone of Rs 582. One can create long positions on Tech Mahindra keeping a stop loss of Rs 530 and the target can be expected at Rs 582.""The next stock is Kajaria Ceramics, this stock has been in a very strong uptrend. It made an important pivot low near Rs 850 and has been a constantly moving in an upward moving channel. So, recently as well it took a very strong support near the 20-day moving average and bounced back very sharply from there. So it looks like it is again headed towards the channel resistance which is coming near Rs 1,180. So, one can create long positions on Kajaria Ceramics keeping a stop loss of Rs 1,070 and we can expect Rs 1,180 on upside," he said. "Pharmaceutical stocks have been a major contributor to the Index when it rallied towards 9,119 which was in 2014, early 2015 but post that we see that there has been a strong move. It has been all over the places, you look at any stocks from the pharma space. The fall has been sharp in those stocks. Recently, Sun Pharma showed some attempt to show a pullback towards Rs 850 but again it reversed back sharply." "So, I think the overall under performances cycle which has started should continue at least for few months to a year in the pharma space. Over short term as well, Sun Pharma looks like a good shorting opportunity where it can head towards the previous pivot low of Rs 710. So a trade over short-term can be selling Sun Pharma keeping a stop loss of around Rs 780 and the target can be Rs 710."