Go long in HPCL, Divis Labs; sell Mindtree: Ashish Kyal

Ashish Kyal of wavesstrategy.com told CNBC-TV18, "The first pick is going to be oil marketing companies (OMCs). We have been bullish on the entire space for quite some time and still there looks to be lot of room left on the upside. Even now, HPCL has been moving higher. There is no negative divergence, so the momentum is intact. One should be in the trend as long as we continue to see a positive bar formation both on the daily as well as the weekly scale. Long positions can be created keeping a stop loss of Rs 1,140 for the target level of Rs 1,310 on the upside." "The next call on the buy side is Divis Laboratories. This stock formed a very important low near the zone of Rs 1,030 just a few weeks back and post that it has been running on the upside. Probably, the stock is in the sea wave now and it should reach towards the target level of Rs 1,290 which is a Fibonacci projection of equality. One can create long positions on Divis Lab keeping a stop loss of Rs 1,160 for the target of Rs 1,290," he said."The third and the final call is a sell on Mindtree. This stock has been falling and seriously capitulating from the levels of Rs 750. There has been some consolidation for few months within the zone of Rs 650 to 700. However, post that there has been a strong breakdown and we can clearly see this breakdown that has happened with a gap." "Overall trend for Mindtree is negative and it is exactly the opposite which we saw on the HPCL which is running on the upside and Mindtree is running on the downside. So, the strategy is selling the under performer and one can keep a stop loss on Mindtree at Rs 590 for the short positions and expect a target level of Rs 500.""Overall, the trend for Bajaj Auto has been positive. It has managed to form higher highs and higher lows which is typical as per Dow Theory method. If you check the trend is positive. So, I will still utilise any dips as a buying opportunity. As long as Rs 2,620 remains intact, that is the crucial pivot level that one has to keep in mind then a move back above the level of Rs 2,750 and close above that level is going to be important which will confirm that the positive trend is again resuming back towards Rs 2,800 or higher."