Buy IDFC Bank, UPL, Sell TVS Motor: Sumeet Bagadia

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Sumeet Bagadia, associate director at Choice Broking, says a pullback rally is expected in the Nifty in the near term on the back of the recent short-covering seen in the index.

Stock talk

Avoid Bharat Financial Inclusion: The stock appears to be in a short-covering rally. Some more pullback can be expected from current levels, pushing the stock to touch levels of Rs. 530-540. The counter doesn’t look strong until a convincing close above Rs. 500 and is expected to move in a range of Rs. 450-470 on the lower side 540-550 on the higher side.
Buy IDFC Bank: The stock is looking good on the back of good volumes seen recently and a good upside is expected. IDFC Bank looks headed to immediate levels of Rs. 64-65, and it can go to Rs. 70 once those are taken out. Investors may initiate fresh long positions at the current price with stop loss At Rs. 56.

Buy UPL: The stock has taken support around Rs. 605-610 levels. Till those levels are not broken on the downside, any dips in the stock can be used as a buying opportunity. UPL faces some resistance at Rs. 640 and as soon as a convincing above that mark is seen, the stock has potential to test Rs. 680-700 levels. Investors may take long positions at current levels with stop loss at Rs. 600-605.

Avoid Cadila Healthcare: It is too early to say that the stock is looking positive. Investors may avoid long positions till the time levels of Rs. 358-359 are not taken away.

Avoid Divi’s Laboratories: The stock has seen a small pullback move after a sharp fall. One can only expect a fresh upmove in the counter once Rs. 800 is taken out on the upside. After Divi’s Labs crosses that hurdle, an upmove till Rs. 840-850 can be expected.

Sell TVS Motor: The stock is looking weak at the current juncture with an immediate support at Rs. 350. Any levels towards Rs. 357 can be used as a selling opportunity for a target price of Rs. 330 with stop loss at Rs. 365.

Disclaimer: Investors are advised to make their own assessment before acting on the information.