Buy DLF, sell Titan, Sun Pharma today: Sanjeev Bhasin

Strong global cues could see markets trend higher on Friday. Gold has witnessed a sharp correction indicating that risk is back on the table. Brazilian equities and the Mexican currency have rallies sharply over the week.

Locally, expect consolidation above 6,600 with stock and sector outperformance continuing. High beta cyclical stocks, which saw high rollovers, could outshine.

Pharma and IT stocks continue to be under pressure as rupee strengthens and investors flock to riskier cyclical stocks.

Midcaps are likely to outperform large cap heavyweights today. Long on reality, home finance and PSU banks, while short on gold, FMCG and pharma could make money today.

Trading calls for today

Longs:

1. Buy LIC Housing: 231, stop loss 226, target 247

2. Buy DLF: 174, stop loss 169, target 247

3. Buy Sobha Developers: 342, stop loss 336, target 369

4. Buy Canara Bank: 251, stop loss 245, target 270

Shorts:

1. Sell Titan: 254, stop loss 261, target 228

2. Sell Asian Paints: 540, stop loss 554, target 515

3. Sell GAIL: 382, stop loss 390, target 367

4. Sell Sun Pharma: 562, stop loss 572, target 531

Investment call:

Buy Allahabad Bank: 80-85, 3-month target 118 (Why: Well franchised PSU bank which has presence across the country. Has shown bottoming out of NPAs and restructured loans in the last few quarters. Now, the lender is poised for better asset book and increase in NIMs. Gives a dividend yield of almost 7 per cent and is very attractively priced).