Ruchit Jain, equity technical analyst at Angel Broking, says the up move in the last three days shows that the Nifty has formed a short term bottom and it could go up to 7,500 this week.
Sell DLF: Investors holding the stock should book profit around Rs. 114 level. Fresh long position is not advisable as Rs. 115 is a strong resistance for the stock.
Avoid M&M: Short term trend is weak; the stock is heading towards Rs. 1,080. Fresh long positions in the stock can be made around Rs. 1,080.
Exit ICICI Bank: The stock has pulled back from an oversold zone. In the short term, it can go up to Rs. 230, which traders should use to exit long positions.
Buy Axis Bank: The stock has been consolidating over three-four weeks, which is a sign of accumulation. It can move higher in the near term.
Buy Bank of Baroda/SBI: These two stocks have better risk-reward ratio among the public sector banks. Up move in these counters may continue till markets rise.
Buy Coal India: The stock is consolidating in the range of Rs. 290-Rs. 330. Buy the stock around lower end of the range and look to exit on pullbacks.
Buy Hindalco/Vedanta: These two stocks have shown some consolidation in last few weeks. Hindalco has given a short term breakout on the upside, which could lead the stock up to Rs. 84 level.
Buy Hero MotoCorp: It has broken last one year’s high with good volumes, which may lead to continuation of the up move to Rs. 2,980-Rs. 3,000. In the short term Rs. 2,700 will act as a support.