Buy IDFC, LIC Housing; sell steel stocks: Sanjeev Bhasin

Strong global cues should see Nifty open higher today, though second half of the trade may witness profit booking. 6,780-6,800 seem to be the highs for the time being.

With no chance of immediate rate cut, expect cost of money to remain elevated, which should pressure economic growth.

With the Election Commission clearing the issuance of bank licenses, expect hopefuls to lead from the front. The cutting of steel prices by most companies is a cause of worry as strong rupee is leading to price cuts to guard against Chinese imports.

For today, buying bank license probables should be the long strategy along with select auto & FMCG, while selling the steel stocks should make money for the day.

Trading calls for the day:

Longs:

1. Buy IDFC: 123, stop loss 117, target 142

2. Buy LIC Housing: 236, stop loss 231, target 262

3. Buy Tata Motors: 403, stop loss 393, target 442

4. Buy Tata Global: 152, stop loss 147, target 171

Shorts:

1. Sell Jindal Steel: 297, stop loss 303, target 271

2. Sell JSW Steel: 1025, stop loss 1045, target 962

3. Sell Sail: 71.5, stop loss 73.5, target 64

4. Sell Axis Bank: 1470, stop loss 1500, target 1360

Investment call:

Buy Sesa Sterlite: 185-195, 3 month target 241 (Why: One of the global leaders in the mining space. The stock has performed poorly due to mining ban, which hit imports. Expectation of revival of mining should see return of volume & improvement in margins. Sesa's merger with Sterlite will lead to strong traction)