Pradip Hotchandani, head of research at Prudent Broking Services, says the Nifty has bounced back after briefly dipping below support at 7,600. Going forward, levels around 7,700-7,900 can act as stiff resistance which may be taken out after a consolidation phase of 10-12 trading sessions. (Watch)
Buy Tata Motors: Dips in Tata Motors may be used as a buying opportunity as the worst appears to be over for the stock. A crucial resistance level to watch out for will be Rs.430.
Buy TVS Motor Company: This is a preferred pick among the auto pack. The stock has moved above its resistance ofRs. 285-290 and once it moves above Rs. 322, investors can look at another 10-15 per cent upside in TVS Motor.
Buy JSW Steel: JSW Steel looks attractive and it is on track to up to Rs. 1,370.
Buy Tata Steel: The stock looks poised to go towards levels of Rs. 350. Tata Steel may move further up once this level is taken out.
Buy Adani Ports: Adani group stocks look positive from a short-term perspective. Adani Ports appears to be in a buy mode and the current upmove can extend to Rs. 270.
Buy Adani Power: The stock is expected to continue its uptrend towards and it can go up to Rs. 35. Investors can expect higher levels once the Rs. 35 level is taken out.
Avoid oil marketing companies: Global crude oil has made a firm bottom around the level of $26/barrel. Once it takes out $41/barrel, it may move further up to $55-$60 levels over the next 1 year or so. The current run-up in oil marketing companies (OMCs) can continue in case they are able to pass on the hike in global prices. From a technical perspective, stocks such as Cairn India are preferred over OMCs.
Buy Cairn India: The stock has shown “remarkable strength”. Once Cairn takes out resistance around Rs. 172, it can go up to a next major target of Rs. 200.