Go long in SBI, ONGC can head to Rs 290: Rishi Kohli

Rishi Kohli, MD & CEO at ProAlpha Systematic Capital told CNBC-TV18, "State Bank of India has very strong long term support around Rs 150, rallied well from there, ticked a lot of strong medium term technical signal checklists along the way. So one can, in the near-term go long on that with a stop loss of Rs 240 with a target of Rs 295. Overall PSU banks have not been really doing much, but it looks like the worst is over for them with the leader SBI looking very good." "Oil and Natural Gas Corporation (ONGC) is very interesting because the stock is correlated to crude apart from giving some general weakness by itself. Along with crude it has slid over the last 1-1.5 years. But that picture seems to be changing, so both the stocks as well as crude prices seem to have given good bottoming out formations along with an initial rally. Crude looks like it can easily head to USD 55-60 per barrel sort of range and along with that ONGC will also get a further flip and therefore it could easily go to like a first target of Rs 265 and a second of Rs 290 and a stop loss of Rs 230 can be kept," he said."There is an interesting pair trade in the pharmaceutical sector. In the last few months' rally obviously pharmaceuticals and IT have been performing a little bit because last two years has been very strong for them and there has been a move in cyclicals. But interestingly, in the pharmaceutical space, there are a lot of pair trading opportunities which seem to be pretty attractive," he said. "For now, what I am looking at is long in Divis Laboratories and short Lupin with Divis having broken out to new highs along with a lot of monthly signals turning positive like the monthly moving average convergence/divergence (MACD) again as of today and Lupin looking lack lustre along with a lot of negative signals on the monthly charts. So, it has been very strong for Lupin over the last 2-3 years, so it may not fall, but it will at least remain lack lustre or go sideways. So, the pair trade will do very well from a near-term perspective as well as a medium-term perspective."