Nifty has broken a major hurdle convincingly and the recent bounce in the index is expected to extend further, says Sameet Chavan, equity technical analyst at Angel Broking. Nifty is expected to go up to 8,250-8,300 in the next 3-4 trading sessions, he adds.
Buy DHFL: The stock has corrected sharply and levels around Rs 230-235 are expected to act as a strong base going forward. Traders can use dips as a buying opportunity for a target of Rs 254-260 with stop loss at Rs 218.
Buy Karnataka Bank: Most PSU banking names have witnessed underperformance and corrected from higher levels. Karnataka Bank has been moving around its 200-day moving average from last 2-3 sessions and a decent bounce towards Rs 118 is expected in the counter in the near term. Traders can use any dips for buying this stock with stop loss at Rs 94.
Buy TCS: The IT space has witnessed "tremendous underperformance" in past 5-6 months and the Nifty IT index is expected to find strong support around 9400-9500 levels. Current gains in TCS are expected to extend going forward and traders should watch out for the stock going up to Rs 2,300-2,350 levels in the near term.
Buy Ashok Leyland: Even though the stock has corrected sharply in last two weeks, Mr Chavan maintains a positive bias on it with a medium-term perspective. Traders can make a contradictory buy call in Ashok Leyland at current levels, for a near-term target of Rs 86-89 with stop loss around Rs 71-72.
Disclaimer: Investors are advised to make their own assessment before acting on the information.