Pick L&T, LIC Housing Finance: Hemant Thukral

Hemant Thukral of Aditya Birla Money told CNBC-TV18, “I have picked Larsen and Toubro (L&T) purely on basis of the shorts that are still open in the system. We saw on Friday that some short covering was happening, in fact 4-5 percent open interest got unwinded. The stock saw some delivery based buying also coming back. So, the way the things are shaping up, I have a feeling if a trader can keep a stop loss of Rs 1,610 to Rs 1,615 which is a very strong bottom for L&T, in immediate short-term it seems that it is heading towards Rs 1,690-1,700 zone. That is the area where I think a lot of resistance will come in. So, I have a feeling that the next round of short covering will happen in L&T in next two to three trading sessions.”  “LIC Housing Finance is one of the counters which saw fresh long being built up. After the result what we saw, the stock has seen stability coming back and now with the market moving up, it is seeing fresh longs being start to built up. That is a position where traders should start to enter those stocks where long positions are being seen,” he said.  “I have a feeling that in immediate short-term it will revisit the earlier highs or maybe levels around the earlier highs of Rs 510-515. Whoever is buying LIC today should keep a stop loss of Rs 465-470 zone which has been quite a strong support zone for the stock. However, it is seeing long positions being built up and I see this trading pattern continue on the long side and is a good pick for the traders.”